PayPal (NASDAQ:PYPL) Stock Price Down 1.7% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price fell 1.7% during trading on Monday . The stock traded as low as $44.96 and last traded at $46.16. 18,869,711 shares were traded during mid-day trading, a decline of 28% from the average session volume of 26,215,666 shares. The stock had previously closed at $46.97.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on PYPL shares. Piper Sandler lowered their price objective on PayPal from $76.00 to $74.00 and set a “neutral” rating for the company in a research note on Wednesday, January 14th. Morgan Stanley decreased their price target on shares of PayPal from $50.00 to $34.00 and set an “underweight” rating for the company in a research report on Wednesday, February 4th. Susquehanna dropped their price target on shares of PayPal from $90.00 to $63.00 and set a “positive” rating for the company in a research note on Wednesday, February 4th. JPMorgan Chase & Co. cut their price target on shares of PayPal from $70.00 to $46.00 and set a “neutral” rating on the stock in a report on Wednesday, February 4th. Finally, Bank of America assumed coverage on PayPal in a report on Thursday. They issued a “neutral” rating and a $48.00 price objective for the company. Eight research analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $59.03.

PayPal Price Performance

The firm has a market cap of $42.50 billion, a P/E ratio of 8.53, a P/E/G ratio of 1.40 and a beta of 1.43. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The business’s 50 day moving average is $50.26 and its two-hundred day moving average is $60.53.

PayPal (NASDAQ:PYPL) last issued its quarterly 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 15.77% and a return on equity of 25.42%. The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same period last year, the company posted $1.19 EPS. The business’s revenue was up 4.0% compared to the same quarter last year. As a group, analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given a dividend of $0.14 per share. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.2%. PayPal’s dividend payout ratio is presently 10.35%.

Insider Buying and Selling

In other news, EVP Frank Keller sold 29,581 shares of the firm’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $1,361,317.62. Following the completion of the sale, the executive vice president owned 51,567 shares of the company’s stock, valued at $2,373,113.34. This trade represents a 36.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CAO Chris Natali sold 2,208 shares of PayPal stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total transaction of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares of the company’s stock, valued at $50,992.20. This represents a 65.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 87,608 shares of company stock valued at $3,831,535 over the last 90 days. Company insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of large investors have recently bought and sold shares of the stock. Bard Associates Inc. bought a new position in shares of PayPal during the 4th quarter worth about $25,000. Caitong International Asset Management Co. Ltd increased its position in PayPal by 15,233.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after buying an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC acquired a new position in PayPal during the 4th quarter worth approximately $28,000. Cloud Capital Management LLC acquired a new position in PayPal during the 3rd quarter worth approximately $30,000. Finally, Kelleher Financial Advisors bought a new position in PayPal in the third quarter worth approximately $30,000. 68.32% of the stock is currently owned by institutional investors and hedge funds.

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.