PayPal (NASDAQ:PYPL) Stock Falls 2.1% – Time to Sell?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price was down 2.1% during trading on Thursday. The company traded as low as $58.32 and last traded at $58.96. Approximately 11,170,795 shares traded hands during trading, a decline of 35% from the average daily volume of 17,061,473 shares. The stock had previously closed at $60.20.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal raised its 2026 adjusted EPS outlook to about $5.60 after reporting third-quarter results, a supportive signal for earnings expectations. Article: PayPal Is Up 15% in Six Months After a Q3 Beat
• Positive Sentiment: A valuation analysis argues PYPL could be about 13% undervalued, and notes recent share-price momentum, though it also describes quarterly earnings as mixed. Article: PayPal Could Be 13% Undervalued
• Neutral Sentiment: PayPal’s third-quarter basic EPS from continuing operations was $1.26, below $1.31 a year earlier. This signals some earnings pressure, but the company’s raised full-year outlook provides a counterpoint. Article: PayPal Could Be 13% Undervalued
• Negative Sentiment: A comparison of analyst forecasts expects PayPal’s normalized EPS to grow 11% from 2025 to 2027, slower than American Express’s projected 31% growth. That relative outlook may limit enthusiasm for PYPL. Article: American Express vs. PayPal Growth Forecasts
• Negative Sentiment: Freedom Broker downgraded PayPal from “strong buy” to “hold,” adding a cautious analyst view. Article: Freedom Broker Rating

Wall Street Analyst Weigh In

A number of research firms have recently commented on PYPL. William Blair restated a “market perform” rating on shares of PayPal in a research report on Wednesday, July 15th. Telsey Advisory Group cut shares of PayPal to a “market perform” rating in a research note on Friday, July 24th. Royal Bank Of Canada boosted their price target on shares of PayPal from $65.00 to $70.00 and gave the stock an “outperform” rating in a report on Monday, August 31st. The Goldman Sachs Group set a $50.00 price target on shares of PayPal in a report on Tuesday, July 28th. Finally, Clear Str upgraded shares of PayPal to a “hold” rating in a research report on Thursday, July 16th. Eight investment analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $55.94.

PayPal Stock Performance

The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.56. The stock’s fifty day simple moving average is $55.10 and its 200 day simple moving average is $50.10. The company has a market cap of $49.21 billion, a price-to-earnings ratio of 11.31, a P/E/G ratio of 1.24 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 EPS for the quarter, beating the consensus estimate of $1.31 by $0.14. The firm had revenue of $8.58 billion during the quarter, compared to analysts’ expectations of $8.71 billion. PayPal had a return on equity of 24.39% and a net margin of 13.78%. The business’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same quarter last year, the firm earned $1.34 earnings per share. As a group, analysts anticipate that PayPal Holdings, Inc. will post 5.59 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Investors of record on Friday, December 4th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. PayPal’s dividend payout ratio is currently 10.69%.

Insider Buying and Selling

In other news, CAO Chris Natali sold 552 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.80, for a total transaction of $30,249.60. Following the completion of the sale, the chief accounting officer owned 2,400 shares in the company, valued at $131,520. This trade represents a 18.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of PayPal stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $55.37, for a total transaction of $40,530.84. Following the sale, the insider directly owned 41,567 shares in the company, valued at approximately $2,301,564.79. The trade was a 1.73% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 13,437 shares of company stock worth $768,417. Insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On PayPal

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Legacy Trust raised its position in PayPal by 2.2% in the third quarter. Legacy Trust now owns 55,628 shares of the credit services provider’s stock valued at $3,171,000 after purchasing an additional 1,196 shares during the period. Illinois Municipal Retirement Fund boosted its position in shares of PayPal by 9.9% during the third quarter. Illinois Municipal Retirement Fund now owns 104,623 shares of the credit services provider’s stock worth $5,496,000 after buying an additional 9,424 shares during the period. Allspring Global Investments Holdings LLC grew its stake in shares of PayPal by 4.0% in the third quarter. Allspring Global Investments Holdings LLC now owns 42,741 shares of the credit services provider’s stock valued at $2,268,000 after buying an additional 1,654 shares in the last quarter. International Assets Investment Management LLC grew its stake in shares of PayPal by 47.1% in the third quarter. International Assets Investment Management LLC now owns 76,000 shares of the credit services provider’s stock valued at $3,992,000 after buying an additional 24,332 shares in the last quarter. Finally, Covestor Ltd raised its holdings in shares of PayPal by 35.8% in the 3rd quarter. Covestor Ltd now owns 3,949 shares of the credit services provider’s stock valued at $207,000 after buying an additional 1,040 shares during the period. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal Company Profile