PayPal Holdings, Inc. (NASDAQ:PYPL) Receives Average Rating of “Hold” from Analysts

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) have been assigned a consensus rating of “Hold” from the forty-five analysts that are covering the company, MarketBeat reports. Five research analysts have rated the stock with a sell rating, thirty-two have assigned a hold rating and eight have issued a buy rating on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $55.8514.

PYPL has been the subject of several research reports. Susquehanna cut their price objective on PayPal from $90.00 to $63.00 and set a “positive” rating for the company in a research note on Wednesday, February 4th. Sanford C. Bernstein reiterated a “market perform” rating on shares of PayPal in a research report on Tuesday, February 24th. Citigroup increased their price objective on PayPal from $42.00 to $48.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 8th. The Goldman Sachs Group lowered their price objective on PayPal from $41.00 to $40.00 in a research report on Wednesday, May 6th. Finally, Citizens Jmp reiterated a “market perform” rating on shares of PayPal in a research report on Wednesday, February 4th.

PayPal Stock Down 1.4%

Shares of PYPL stock opened at $44.41 on Friday. The stock’s fifty day moving average price is $46.61 and its 200 day moving average price is $53.08. PayPal has a 1-year low of $38.46 and a 1-year high of $79.50. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. The company has a market cap of $39.17 billion, a price-to-earnings ratio of 8.33, a price-to-earnings-growth ratio of 1.13 and a beta of 1.39.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion during the quarter, compared to analysts’ expectations of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm’s revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.33 EPS. On average, research analysts expect that PayPal will post 5.3 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid a $0.14 dividend. The ex-dividend date is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. PayPal’s dividend payout ratio (DPR) is currently 10.51%.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analysts and commentary point to PayPal trading at a discounted valuation, with support from Venmo growth, AI-commerce initiatives, and international expansion; several pieces argue the stock may be too cheap if execution improves. Article Title
• Positive Sentiment: PayPal’s Q1 results beat expectations on revenue and profit, and the company is leaning into a new strategy under its CEO, including AI tools for small businesses and a fee-waiver push that could support merchant growth. Article Title
• Positive Sentiment: PayPal’s partnership with Anthropic to bring AI services to small businesses reinforces its effort to modernize the platform and build new revenue opportunities. Article Title
• Neutral Sentiment: The company reached a $30 million DOJ settlement over a past DEI-related program, removing a legal overhang but also highlighting governance and compliance scrutiny. Article Title
• Neutral Sentiment: Reports that UK regulators are investigating PayPal alongside Mastercard and Visa over digital-wallet competition add uncertainty, but the direct financial impact is still unclear. Article Title
• Negative Sentiment: Some analysts remain skeptical after the earnings call, citing margin pressure, transformation risk, and slower confidence in the turnaround story. Article Title
• Negative Sentiment: Investor reaction to the quarter was muted despite the revenue beat, suggesting the market is still focused on margin trends and execution risk rather than near-term growth. Article Title

Insiders Place Their Bets

In related news, CAO Chris Natali sold 2,208 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total transaction of $98,763.84. Following the transaction, the chief accounting officer owned 1,140 shares of the company’s stock, valued at $50,992.20. This trade represents a 65.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Suzan Kereere sold 37,613 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total value of $1,560,563.37. Following the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,285,484.67. This represents a 54.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 96,199 shares of company stock valued at $4,294,018. 0.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Gateway Wealth Partners LLC acquired a new stake in shares of PayPal in the 1st quarter valued at about $274,000. Weiss Asset Management LP raised its stake in shares of PayPal by 80.7% in the 1st quarter. Weiss Asset Management LP now owns 52,380 shares of the credit services provider’s stock valued at $2,369,000 after purchasing an additional 23,392 shares in the last quarter. Delta Global Management LP acquired a new stake in shares of PayPal in the 1st quarter valued at about $2,079,000. Renaissance Technologies LLC acquired a new stake in shares of PayPal in the 1st quarter valued at about $8,738,000. Finally, Morningstar Investment Management LLC raised its stake in shares of PayPal by 79.5% in the 1st quarter. Morningstar Investment Management LLC now owns 72,011 shares of the credit services provider’s stock valued at $3,257,000 after purchasing an additional 31,896 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.