PayPal (NASDAQ:PYPL) Sets New 1-Year Low – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price reached a new 52-week low on Tuesday . The stock traded as low as $55.02 and last traded at $55.6450, with a volume of 7022610 shares traded. The stock had previously closed at $56.89.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced a partnership with embedded tax platform april to offer free DIY federal and state tax filing for U.S. PayPal Debit Mastercard customers — a low-cost benefit that can increase debit-card activation, customer stickiness and cross-sell opportunities. PayPal Introduces Free DIY Tax Filing for PayPal Debit Card Customers
• Positive Sentiment: Retail investor media (The Motley Fool) lists PayPal among fintechs to buy for the long term, which can support longer-term inflows from momentum/retail buyers if the thesis gains traction. 2 Fintech Stocks to Buy Hand Over Fist in 2026 and Hold for 10 Years
• Neutral Sentiment: Seeking Alpha published an earnings-preview piece framing PayPal as near a trough (“darkest before the dawn”) — useful for investors assessing risk/reward ahead of upcoming results but not new company-level data. PayPal: It’s Darkest Before The Dawn (Earnings Preview)
• Neutral Sentiment: Another Seeking Alpha piece examines PayPal’s outlook after hitting multi-year lows — helpful context for longer-term investors but largely thematic rather than catalytic. PayPal: Outlook After Hitting 5-Year Low
• Neutral Sentiment: Comparative coverage on stablecoins (Payoneer vs. PayPal) discusses strategic paths into tokenization — important for long-term competitive positioning but unlikely to move the stock immediately. Payoneer vs PayPal: Which Payment Processor Wins the Stablecoin War?
• Negative Sentiment: Wedgewood Partners trimmed its PayPal holdings per its investor letter — an institutional reduction that can weigh on sentiment and suggests some investor caution about growth/valuation. Wedgewood Partners trimmed its holdings in PayPal Holdings (PYPL)
• Negative Sentiment: Reports show insiders sold roughly $2.4M of PYPL shares and some price targets were lowered — insider selling plus analyst downgrades/target cuts typically add downward pressure on the stock. PayPal (PYPL) Stock: Insiders Sell $2.4M in Shares as Price Targets Drop

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on PYPL shares. Royal Bank Of Canada raised their price target on PayPal from $88.00 to $91.00 and gave the company an “outperform” rating in a report on Tuesday, October 28th. Daiwa Capital Markets downgraded shares of PayPal from an “outperform” rating to a “neutral” rating and cut their price objective for the company from $77.00 to $61.00 in a research report on Tuesday, January 13th. Robert W. Baird restated a “neutral” rating and set a $66.00 price objective (down from $83.00) on shares of PayPal in a research note on Friday, December 12th. Dbs Bank decreased their target price on shares of PayPal from $75.00 to $70.00 and set a “hold” rating for the company in a report on Thursday, November 13th. Finally, Mizuho cut their price target on shares of PayPal from $84.00 to $75.00 and set an “outperform” rating on the stock in a report on Monday, December 22nd. Twelve investment 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 stock. According to data from MarketBeat, PayPal presently has a consensus rating of “Hold” and a consensus price target of $75.84.

PayPal Trading Down 3.2%

The stock has a market capitalization of $51.54 billion, a PE ratio of 11.04, a P/E/G ratio of 0.71 and a beta of 1.42. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56. The stock has a 50 day moving average price of $60.38 and a 200-day moving average price of $66.61.

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

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Wednesday, November 19th were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Wednesday, November 19th. PayPal’s payout ratio is presently 11.22%.

Insider Activity

In other PayPal news, EVP Diego Scotti sold 3,838 shares of the 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 completion of the sale, the executive vice president directly owned 16,989 shares of the company’s stock, valued at $1,171,731.33. This trade represents a 18.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Chris Natali sold 1,374 shares of the business’s stock in a transaction dated Thursday, October 30th. The stock was sold at an average price of $69.13, for a total value of $94,984.62. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 36,156 shares of company stock valued at $2,432,524. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

Large investors have recently modified their holdings of the stock. JB Capital LLC raised its position in PayPal by 0.8% in the 4th quarter. JB Capital LLC now owns 44,130 shares of the credit services provider’s stock worth $2,576,000 after purchasing an additional 341 shares during the period. LifePlan Financial LLC grew its stake in shares of PayPal by 7.7% during the fourth quarter. LifePlan Financial LLC now owns 29,759 shares of the credit services provider’s stock valued at $1,737,000 after buying an additional 2,128 shares during the last quarter. Savvy Advisors Inc. raised its holdings in shares of PayPal by 12.3% in the fourth quarter. Savvy Advisors Inc. now owns 6,339 shares of the credit services provider’s stock worth $370,000 after buying an additional 693 shares during the period. Arvest Investments Inc. bought a new stake in shares of PayPal during the fourth quarter worth $231,000. Finally, Trust Co. of Toledo NA OH lifted its holdings in PayPal by 3.5% during the 4th quarter. Trust Co. of Toledo NA OH now owns 12,403 shares of the credit services provider’s stock valued at $724,000 after buying an additional 418 shares in the last quarter. 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.