PayPal (NASDAQ:PYPL) Price Target Cut to $42.00 by Analysts at Citigroup

PayPal (NASDAQ:PYPL) had its price target lowered by equities researchers at Citigroup from $60.00 to $42.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the credit services provider’s stock. Citigroup’s price target indicates a potential upside of 2.08% from the company’s previous close.

Several other research firms also recently issued reports on PYPL. Canaccord Genuity Group reissued a “hold” rating and issued a $42.00 target price (down from $100.00) on shares of PayPal in a research report on Wednesday. Royal Bank Of Canada dropped their target price on PayPal from $91.00 to $59.00 and set an “outperform” rating on the stock in a report on Wednesday. Bank of America reaffirmed a “neutral” rating and set a $68.00 target price (down previously from $93.00) on shares of PayPal in a research note on Thursday, December 11th. Susquehanna reduced their price objective on PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a research note on Wednesday. Finally, KeyCorp reiterated a “hold” rating on shares of PayPal in a report on Wednesday, October 22nd. Ten equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $63.93.

PayPal Stock Down 1.3%

PayPal stock traded down $0.56 during trading hours on Wednesday, reaching $41.15. The stock had a trading volume of 29,786,487 shares, compared to its average volume of 22,105,498. The business’s 50 day moving average price is $58.48 and its 200-day moving average price is $65.01. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. PayPal has a 52 week low of $39.96 and a 52 week high of $79.74. The company has a market cap of $38.50 billion, a price-to-earnings ratio of 8.27, a PEG ratio of 0.65 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last posted its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.82 billion. During the same period in the previous year, the company earned $1.19 EPS. The company’s revenue was up 4.0% on a year-over-year basis. Sell-side analysts anticipate that PayPal will post 5.03 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Aaron Webster sold 9,282 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $66.29, for a total transaction of $615,303.78. Following the transaction, the executive vice president directly owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. The trade was a 20.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of PayPal 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 sale, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PayPal

Hedge funds have recently added to or reduced their stakes in the stock. Hilltop National Bank acquired a new stake in shares of PayPal in the 2nd quarter worth about $27,000. MUFG Securities EMEA plc grew its position in PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 87,524 shares during the last quarter. Kelleher Financial Advisors acquired a new position in shares of PayPal during the third quarter worth approximately $30,000. Cloud Capital Management LLC bought a new position in PayPal in the 3rd quarter worth approximately $30,000. Finally, VSM Wealth Advisory LLC acquired a new stake in PayPal in the 2nd quarter valued at approximately $36,000. 68.32% of the stock is currently owned by institutional investors.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Board named HP’s Enrique Lores as incoming CEO (effective March 1); management change could bring operational discipline and a turnaround playbook if execution improves. Reuters: PayPal names Enrique Lores as CEO
• Positive Sentiment: Some bullish analysts still see long-term upside (e.g., Macquarie reaffirmed outperform with a $100 PT), leaving room for counter‑trend rallies if fundamentals stabilize. Benzinga
• Neutral Sentiment: Company announced a $0.14 quarterly dividend (modest yield) and management signaled capital returns (buybacks) as part of the response — supportive but not a near‑term growth fix.
• Neutral Sentiment: Mixed analyst views remain: some firms maintain Holds/Neutral ratings while others push Sell/Underweight — expect continued dispersion in research reactions. TipRanks: analyst reactions
• Negative Sentiment: Q4 results missed estimates — adjusted EPS $1.23 vs. consensus ~$1.29 and revenue $8.68B below expectations; company guided to lower 2026 profits, which triggered the initial selloff. MarketBeat: Q4 results & call materials
• Negative Sentiment: Surprise CEO shakeup and interim leadership raised execution and governance concerns; the market treated the move as a sign the board is unhappy with pace of change. WSJ: stock reaction to CEO change
• Negative Sentiment: Multiple price‑target cuts and downgrades (JPMorgan to $46 neutral; RBC, Susquehanna, Stephens and Morgan Stanley cuts) intensified selling pressure and reset expectations lower. Benzinga: JPMorgan PT cut MarketScreener: RBC
• Negative Sentiment: Regulatory / litigation risk: law firms have launched securities‑fraud investigations into the company’s disclosures around the leadership change and results, adding legal overhang. BusinessWire: securities fraud investigation
• Negative Sentiment: Negative publicity and insider/former‑executive criticism (former PayPal president’s comments) further weigh on investor confidence. Business Insider

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.