PayPal (NASDAQ:PYPL) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of PayPal (NASDAQ:PYPL) from a buy rating to a hold rating in a report published on Sunday.

Several other analysts have also issued reports on the company. Susquehanna lowered their target price on PayPal from $94.00 to $90.00 and set a “positive” rating on the stock in a research note on Thursday, January 8th. Daiwa Capital Markets lowered PayPal from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $77.00 to $61.00 in a report on Tuesday, January 13th. Daiwa America cut PayPal from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Mizuho cut their target price on shares of PayPal from $84.00 to $75.00 and set an “outperform” rating for the company in a research report on Monday, December 22nd. Finally, Compass Point reduced their target price on shares of PayPal from $56.00 to $55.00 and set a “sell” rating for the company in a research note on Tuesday, January 13th. Twelve equities research analysts have rated the stock with a Buy rating, twenty-seven have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $75.84.

PayPal Stock Performance

Shares of PYPL stock opened at $55.08 on Friday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market cap of $51.54 billion, a price-to-earnings ratio of 11.04, a P/E/G ratio of 0.71 and a beta of 1.42. PayPal has a 52 week low of $55.01 and a 52 week high of $92.21. The firm’s 50-day simple moving average is $60.13 and its two-hundred day simple moving average is $66.46.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. The firm had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company’s revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.20 EPS. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, equities analysts forecast that PayPal will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Wednesday, November 19th were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, November 19th. PayPal’s dividend payout ratio (DPR) is currently 11.22%.

Insider Activity at PayPal

In other news, EVP Diego Scotti sold 3,838 shares of PayPal stock in a transaction on Thursday, October 30th. The shares were sold at an average price of $68.97, for a total transaction of $264,706.86. Following the completion of the sale, the executive vice president directly owned 16,989 shares of the company’s stock, valued at approximately $1,171,731.33. The trade was a 18.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the completion of the transaction, the insider owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 36,156 shares of company stock valued at $2,432,524. Company insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

Hedge funds have recently added to or reduced their stakes in the company. Hilltop National Bank purchased a new stake in PayPal in the second quarter worth approximately $27,000. MUFG Securities EMEA plc lifted its holdings in shares of PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after buying an additional 87,524 shares during the period. Cloud Capital Management LLC purchased a new position in shares of PayPal in the 3rd quarter worth $30,000. Kelleher Financial Advisors bought a new stake in shares of PayPal in the third quarter worth $30,000. Finally, True Wealth Design LLC grew its holdings in shares of PayPal by 285.3% in the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock worth $35,000 after acquiring an additional 388 shares during the period. Institutional investors own 68.32% of the company’s stock.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced a partnership with embedded-tax platform april to offer free DIY federal and state tax filing for U.S. PayPal Debit Mastercard customers — a product tie-in that can boost card engagement and customer “stickiness,” cut customers’ costs, and modestly increase transaction flows. PayPal Introduces Free DIY Tax Filing for PayPal Debit Card Customers
• Positive Sentiment: Retail analyst coverage includes bullish long-term views that list PayPal among top fintechs to buy and hold for years — helpful for sentiment and long-term investor interest even if not an immediate catalyst. 2 Fintech Stocks to Buy Hand Over Fist in 2026 and Hold for 10 Years
• Neutral Sentiment: Several preview/analysis pieces frame PayPal as near-term cyclical weakness but potential medium-term recovery — analysts expect this is “darkest before the dawn” ahead of earnings and following the stock’s multi-year lows; these narratives can drive volatility but are mixed in directional impact. PayPal: It’s Darkest Before The Dawn (Earnings Preview) PayPal: Outlook After Hitting 5-Year Low
• Neutral Sentiment: Stephens maintains a “Hold” on PYPL — keeps analyst coverage steady but does not provide an immediate positive catalyst. Stephens Remains a Hold on PayPal Holdings (PYPL)
• Neutral Sentiment: Industry comparison pieces highlight competition (e.g., Payoneer) in stablecoins and cross-border payments — underscores strategic pressures but also areas for PayPal to expand if it executes. Payoneer vs PayPal: Which Payment Processor Wins the Stablecoin War?
• Negative Sentiment: Insiders sold about $2.4M of PYPL stock and some sell-side price targets were lowered — selling and downgrades weigh on near-term sentiment and can pressure the stock. PayPal (PYPL) Stock: Insiders Sell $2.4M in Shares as Price Targets Drop
• Negative Sentiment: Wedgewood Partners trimmed its stake in PayPal in its latest letter — a visible institutional trimming that adds to negative supply pressure and investor caution. Wedgewood Partners trimmed its holdings in PayPal Holdings (PYPL)

PayPal Company Profile

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.