Compass Point Issues Pessimistic Forecast for PayPal (NASDAQ:PYPL) Stock Price

PayPal (NASDAQ:PYPL) had its price objective cut by stock analysts at Compass Point from $56.00 to $55.00 in a research note issued on Tuesday,MarketScreener reports. The firm currently has a “sell” rating on the credit services provider’s stock. Compass Point’s price objective would indicate a potential downside of 3.07% from the stock’s previous close.

Other research analysts have also recently issued research reports about the company. Mizuho decreased their target price on PayPal from $84.00 to $75.00 and set an “outperform” rating for the company in a research note on Monday, December 22nd. Rothschild & Co Redburn raised their price objective on shares of PayPal from $66.00 to $70.00 and gave the company a “neutral” rating in a research report on Tuesday, September 16th. Citigroup dropped their target price on shares of PayPal from $78.00 to $60.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. Daiwa Capital Markets cut shares of PayPal from an “outperform” rating to a “neutral” rating and reduced their target price for the stock from $77.00 to $61.00 in a report on Tuesday. Finally, KeyCorp reaffirmed a “hold” rating on shares of PayPal in a report on Wednesday, October 22nd. Twelve research analysts have rated the stock with a Buy rating, twenty-seven have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $76.36.

PayPal Price Performance

Shares of PayPal stock traded down $0.92 on Tuesday, hitting $56.74. The company had a trading volume of 16,368,111 shares, compared to its average volume of 15,697,429. PayPal has a 52 week low of $55.85 and a 52 week high of $93.25. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The company has a market cap of $53.09 billion, a PE ratio of 11.37, a PEG ratio of 0.69 and a beta of 1.42. The business has a 50-day simple moving average of $60.94 and a 200-day simple moving average of $67.07.

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

Insider Activity at PayPal

In related news, EVP Diego Scotti sold 3,838 shares of the business’s stock in a transaction that occurred on Thursday, October 30th. The shares were sold at an average price of $68.97, for a total transaction of $264,706.86. Following the transaction, the executive vice president directly owned 16,989 shares of the company’s stock, valued at approximately $1,171,731.33. The trade was a 18.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Aaron Webster sold 9,282 shares of the company’s stock in a transaction that occurred on 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 transaction, the executive vice president owned 35,699 shares in the company, valued at approximately $2,366,486.71. This represents a 20.64% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 36,156 shares of company stock valued at $2,432,524. 0.08% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of PayPal during the 2nd quarter worth about $921,570,000. Dimensional Fund Advisors LP increased its holdings in PayPal by 35.9% in the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock worth $548,520,000 after buying an additional 2,160,227 shares during the last quarter. Lazard Asset Management LLC raised its position in PayPal by 1,066.0% during the second quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock valued at $156,532,000 after acquiring an additional 1,925,583 shares in the last quarter. Two Sigma Investments LP acquired a new stake in PayPal in the third quarter valued at approximately $97,794,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in PayPal by 45.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,569,023 shares of the credit services provider’s stock valued at $265,250,000 after acquiring an additional 1,107,202 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

About PayPal

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.