PayPal (NASDAQ:PYPL) Price Target Cut to $55.00 by Analysts at Compass Point

PayPal (NASDAQ:PYPL) had its target price lowered by Compass Point from $56.00 to $55.00 in a report released on Tuesday morning,MarketScreener reports. The brokerage currently has a sell rating on the credit services provider’s stock.

A number of other brokerages also recently issued reports on PYPL. Sanford C. Bernstein restated a “market perform” rating on shares of PayPal in a report on Wednesday, December 17th. TD Cowen lifted their price objective on PayPal from $75.00 to $80.00 and gave the stock a “hold” rating in a research report on Wednesday, October 29th. Needham & Company LLC restated a “hold” rating on shares of PayPal in a report on Tuesday, October 28th. Baird R W lowered PayPal from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 12th. Finally, Citigroup reduced their price objective on shares of PayPal from $78.00 to $60.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Twelve investment analysts have rated the stock with a Buy rating, twenty-seven have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, PayPal currently has an average rating of “Hold” and a consensus price target of $76.36.

PayPal Trading Down 1.6%

Shares of NASDAQ PYPL traded down $0.92 during mid-day trading on Tuesday, hitting $56.74. The stock had a trading volume of 16,378,344 shares, compared to its average volume of 15,701,349. The business has a 50 day moving average price of $60.94 and a two-hundred day moving average price of $67.07. PayPal has a 1 year low of $55.85 and a 1 year high of $93.25. 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 $53.09 billion, a P/E ratio of 11.37, a price-to-earnings-growth ratio of 0.69 and a beta of 1.42.

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

PayPal Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Wednesday, November 19th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Wednesday, November 19th. PayPal’s dividend payout ratio is 11.22%.

Insider Buying and Selling at PayPal

In related news, EVP Diego Scotti sold 3,838 shares of the firm’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $68.97, for a total transaction of $264,706.86. Following the completion of the transaction, the executive vice president owned 16,989 shares of the company’s stock, valued at $1,171,731.33. This trade represents a 18.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Suzan Kereere sold 12,500 shares of PayPal stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $68.87, for a total value of $860,875.00. Following the transaction, the insider owned 30,983 shares of the company’s stock, valued at $2,133,799.21. The trade was a 28.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 36,156 shares of company stock worth $2,432,524 over the last three months. Company insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On PayPal

Institutional investors and hedge funds have recently modified their holdings of the stock. GSB Wealth Management LLC grew its position in PayPal by 1.7% during the 2nd quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider’s stock valued at $606,000 after purchasing an additional 140 shares during the last quarter. Wedmont Private Capital lifted its stake in shares of PayPal by 1.6% in the third quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider’s stock worth $614,000 after buying an additional 142 shares in the last quarter. Pitti Group Wealth Management LLC grew its holdings in shares of PayPal by 1.5% during the second quarter. Pitti Group Wealth Management LLC now owns 10,233 shares of the credit services provider’s stock valued at $761,000 after buying an additional 147 shares during the last quarter. Dakota Community Bank & Trust NA increased its position in shares of PayPal by 8.7% during the second quarter. Dakota Community Bank & Trust NA now owns 1,840 shares of the credit services provider’s stock valued at $137,000 after acquiring an additional 147 shares in the last quarter. Finally, Maia Wealth LLC raised its holdings in PayPal by 2.5% in the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock worth $424,000 after acquiring an additional 155 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Piper Sandler trimmed its price target to $74 (from $76) but kept a neutral rating — the new target still implies sizable upside, providing a counterweight to negative headlines. Read More.
• Neutral Sentiment: A proposed California “billionaires’ tax” is creating political and regulatory uncertainty for tech firms broadly; the impact on PayPal is indirect but raises macro risk for high-valuation tech stocks. Read More.
• Neutral Sentiment: Market reports and coverage note recent share weakness and trading below recent moving averages, reinforcing the negative momentum but not providing new company-specific catalysts. Read More.
• Negative Sentiment: Compass Point cut its price target to $55 (from $56) and maintains a sell rating — the target sits below the current market level, which can pressure sentiment and selling flows. Read More.
• Negative Sentiment: Daiwa Capital/Daiwa America downgraded PayPal from strong-buy to hold, reducing a formerly bullish broker support and adding to the downdraft in analyst sentiment. Read More.
• Negative Sentiment: TD Cowen lowered its price target to $65 (from $80) and kept a hold rating — a meaningful cut that signals reduced conviction on near-term upside and contributes to downward pressure. Read More.

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.