PayPal (NASDAQ:PYPL) Stock Price Down 3.3% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price traded down 3.3% during trading on Wednesday . The stock traded as low as $44.55 and last traded at $44.59. 18,704,791 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 24,864,039 shares. The stock had previously closed at $46.13.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded its dollar‑pegged stablecoin, PYUSD, to 70 markets, enabling users and merchants to buy, hold, send and receive PYUSD for faster, lower‑cost cross‑border transfers and near‑instant merchant settlement — a potential revenue-growth and margin improvement lever if adoption scales. Read More.
• Positive Sentiment: Exchange integrations are increasing PayPal’s utility: Bybit EU added PayPal for fiat on/off ramps in EEA markets, which could drive transaction volume and PYPL’s crypto-related fee income. Read More.
• Neutral Sentiment: Analyst and media comparisons highlight competitive pressures from regional super‑apps (e.g., Kaspi.kz) that can be cheaper or more entrenched in local markets — a reminder PayPal faces product and pricing competition overseas. Read More.
• Negative Sentiment: Multiple law firms have filed or issued investor alerts about securities‑class actions tied to PayPal’s weak Feb. 3 earnings, withdrawn guidance and an unexpected CEO departure — increasing legal risk, potential costs and executive uncertainty. Read More.
• Negative Sentiment: Several firms are soliciting lead plaintiff motions (Glancy Prongay, Faruqi & Faruqi, Levi & Korsinsky, Rosen, etc.), and at least one complaint names senior executives for individual liability — this litigation wave could be a persistent overhang on the stock. Read More.

Wall Street Analyst Weigh In

Several analysts have issued reports on PYPL shares. BTIG Research restated a “neutral” rating on shares of PayPal in a report on Tuesday, February 3rd. Weiss Ratings reiterated a “hold (c)” rating on shares of PayPal in a report on Thursday, January 22nd. Robert W. Baird set a $52.00 price objective on shares of PayPal in a report on Wednesday, February 4th. Royal Bank Of Canada cut their price objective on shares of PayPal from $91.00 to $59.00 and set an “outperform” rating for the company in a research report on Wednesday, February 4th. Finally, President Capital reduced their target price on shares of PayPal from $91.00 to $80.00 and set a “buy” rating on the stock in a research note on Tuesday, November 25th. Eight analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $59.03.

PayPal Price Performance

The company has a market capitalization of $41.04 billion, a PE ratio of 8.24, a price-to-earnings-growth ratio of 1.35 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The stock’s 50 day simple moving average is $48.36 and its 200-day simple moving average is $59.33.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share 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 business had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter last year, the firm posted $1.19 EPS. The company’s revenue for the quarter was up 4.0% on a year-over-year basis. As a group, equities analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.3%. PayPal’s dividend payout ratio is currently 10.35%.

Insider Activity

In related news, insider Suzan Kereere sold 13,515 shares of PayPal stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $621,960.30. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,425,837.66. This trade represents a 30.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Frank Keller sold 29,581 shares of the business’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $1,361,317.62. Following the transaction, the executive vice president directly owned 51,567 shares of the company’s stock, valued at $2,373,113.34. The trade was a 36.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 87,608 shares of company stock worth $3,831,535. Corporate insiders own 0.08% of the company’s stock.

Institutional Trading of PayPal

Several hedge funds have recently added to or reduced their stakes in the company. Wedmont Private Capital lifted its stake in 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 acquiring an additional 142 shares during the last quarter. Dakota Community Bank & Trust NA raised its holdings in shares of PayPal by 8.7% in the 2nd quarter. Dakota Community Bank & Trust NA now owns 1,840 shares of the credit services provider’s stock valued at $137,000 after purchasing an additional 147 shares in the last quarter. Maia Wealth LLC raised its holdings in shares of PayPal by 2.5% in the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock valued at $424,000 after purchasing an additional 155 shares in the last quarter. Transatlantique Private Wealth LLC lifted its position in shares of PayPal by 2.9% during the 3rd quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider’s stock worth $382,000 after purchasing an additional 159 shares during the last quarter. Finally, WCG Wealth Advisors LLC grew its stake in shares of PayPal by 1.1% during the second quarter. WCG Wealth Advisors LLC now owns 14,285 shares of the credit services provider’s stock worth $1,062,000 after purchasing an additional 162 shares in the last quarter. Institutional investors and hedge funds 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.