PayPal (NASDAQ:PYPL) Shares Up 1.3% – Should You Buy?

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) rose 1.3% during trading on Friday . The company traded as high as $40.61 and last traded at $40.42. Approximately 34,750,555 shares traded hands during mid-day trading, an increase of 42% from the average daily volume of 24,496,074 shares. The stock had previously closed at $39.90.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Deep-value case and buyback/dividend plan underpin a near-term bargain narrative; bulls point to low forward P/E, strong free cash flow and discretionary buybacks/new dividend as a potential floor. Read More.
• Positive Sentiment: Some investors view a new CEO as a catalyst — profiles of Enrique Lores suggest his turnaround/operational experience could help execution if appointed. Read More.
• Positive Sentiment: Several bullish commentaries argue long-term investors can be rewarded if PayPal stabilizes its product growth and execution — fueling bargain-hunting bounces. Read More.
• Neutral Sentiment: Compass Point moved to Neutral, reflecting that some uncertainty (CEO transition, guidance) is now priced in — not a clear buy/sell signal. Read More.
• Neutral Sentiment: Analysts are split: many cut targets and some keep “buy”/“outperform” calls, leaving consensus views mixed and volatility likely as estimates are re-worked. Read More.
• Negative Sentiment: Q4 results disappointed — EPS and revenue missed expectations and management issued lower 2026 guidance, which triggered the initial selloff and higher volatility. Read More.
• Negative Sentiment: CEO Alex Chriss was fired amid the branded-checkout slowdown and guidance cut; leadership turnover increases execution risk during a sensitive transition. Read More.
• Negative Sentiment: Regulatory/litigation risk surfaced: a securities investigation was announced into the gap between prior outlook and reported results, adding legal and disclosure uncertainty. Read More.
• Negative Sentiment: Heavy analyst price-target cuts, downgrades and visible insider selling amplified the selloff and investor caution this week. Read More.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on PYPL shares. Piper Sandler lowered their price target on shares of PayPal from $76.00 to $74.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 14th. Daiwa Securities Group downgraded shares of PayPal from an “outperform” rating to a “neutral” rating and reduced their price objective for the stock from $77.00 to $61.00 in a research note on Tuesday, January 13th. Royal Bank Of Canada lowered their target price on PayPal from $91.00 to $59.00 and set an “outperform” rating on the stock in a research report on Wednesday. Robert W. Baird set a $52.00 target price on PayPal in a report on Wednesday. Finally, Morgan Stanley reduced their price target on PayPal from $50.00 to $34.00 and set an “underweight” rating for the company in a research report on Wednesday. Ten analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $63.72.

PayPal Price Performance

The company has a current ratio of 1.29, a quick ratio of 1.34 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $37.21 billion, a price-to-earnings ratio of 7.47, a P/E/G ratio of 0.78 and a beta of 1.43. The company’s 50 day moving average is $57.18 and its 200-day moving average is $64.35.

PayPal (NASDAQ:PYPL) last released its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter in the prior year, the company earned $1.19 EPS. PayPal’s quarterly revenue was up 4.0% on a year-over-year basis. Equities research analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.4%. PayPal’s dividend payout ratio (DPR) is currently 10.35%.

Insiders Place Their Bets

In other news, EVP Aaron Webster sold 9,282 shares of the firm’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the completion of the sale, the executive vice president owned 35,699 shares in the company, valued at approximately $2,366,486.71. This trade represents a 20.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the sale, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. The trade was a 11.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of institutional investors have recently made changes to their positions in PYPL. EverSource Wealth Advisors LLC increased its stake in shares of PayPal by 56.0% during the fourth quarter. EverSource Wealth Advisors LLC now owns 10,577 shares of the credit services provider’s stock worth $617,000 after purchasing an additional 3,797 shares during the period. Legato Capital Management LLC grew its holdings in PayPal by 23.5% in the 4th quarter. Legato Capital Management LLC now owns 42,628 shares of the credit services provider’s stock valued at $2,489,000 after buying an additional 8,101 shares in the last quarter. Advisory Alpha LLC increased its position in PayPal by 13.8% during the 4th quarter. Advisory Alpha LLC now owns 4,594 shares of the credit services provider’s stock worth $268,000 after buying an additional 557 shares during the period. Evoke Wealth LLC lifted its holdings in shares of PayPal by 119.5% during the fourth quarter. Evoke Wealth LLC now owns 12,099 shares of the credit services provider’s stock worth $706,000 after buying an additional 6,588 shares in the last quarter. Finally, Mizuho Markets Cayman LP boosted its position in shares of PayPal by 20.8% in the fourth quarter. Mizuho Markets Cayman LP now owns 103,752 shares of the credit services provider’s stock valued at $6,057,000 after acquiring an additional 17,876 shares during the period. Institutional investors own 68.32% of the company’s stock.

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.