PayPal (NASDAQ:PYPL) Shares Down 3.2% – Here’s Why

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) fell 3.2% during mid-day trading on Tuesday . The stock traded as low as $55.02 and last traded at $55.08. 19,618,218 shares were traded during mid-day trading, an increase of 23% from the average session volume of 16,006,789 shares. The stock had previously closed at $56.89.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal launched a partnership with embedded tax platform april to give U.S. PayPal Debit Mastercard customers free DIY federal and state tax filing for 2025 — a consumer-facing feature that can deepen engagement and card usage, supporting payments volume and customer retention. PayPal Introduces Free DIY Tax Filing for PayPal Debit Card Customers
• Positive Sentiment: Asset manager commentary highlights PayPal’s long‑term optionality (payments, embedded finance, BNPL, crypto/stablecoin conduits), arguing the business retains structural growth avenues beyond the current cyclical weakness — a potential long‑term positive for investors focused on recovery. What Offers PayPal (PYPL) a Meaningful Long-Term Optionality?
• Neutral Sentiment: Analysts and commentators are mixed: a few lists of long‑term fintech winners include PayPal, but coverage is varied — such pieces can buoy investor confidence but don’t change fundamentals immediately. 2 Fintech Stocks to Buy Hand Over Fist in 2026 and Hold for 10 Years
• Neutral Sentiment: Industry comparisons (e.g., Payoneer vs. PayPal on stablecoins) highlight competitive risks and strategic choices; such analysis informs longer‑term positioning but is more strategic than immediately price moving. Payoneer vs PayPal: Which Payment Processor Wins the Stablecoin War?
• Negative Sentiment: Major funds trimmed positions: Wedgewood Partners reduced its PayPal stake, signaling institutional de‑risking which can add selling pressure and weigh on multiple/market sentiment. Wedgewood Partners Trimmed its Holdings in PayPal Holdings (PYPL)
• Negative Sentiment: Insiders sold roughly $2.4M of stock and several outlets report lower analyst price targets — insider selling and downgrades/target cuts typically amplify downside risk in the near term. PayPal (PYPL) Stock: Insiders Sell $2.4M in Shares as Price Targets Drop
• Negative Sentiment: Recent bearish writeups and earnings previews note PayPal is trading near multi‑year lows and flag execution/volume risks — negative narratives can pressure sentiment and keep the stock underperforming until clearer evidence of reacceleration emerges. PayPal: It’s Darkest Before The Dawn (Earnings Preview) PayPal: Outlook After Hitting 5-Year Low

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PYPL. Compass Point lowered their price objective on PayPal from $56.00 to $55.00 and set a “sell” rating for the company in a research report on Tuesday, January 13th. Wall Street Zen lowered PayPal from a “buy” rating to a “hold” rating in a research report on Sunday. Dbs Bank lowered their target price on PayPal from $75.00 to $70.00 and set a “hold” rating for the company in a report on Thursday, November 13th. The Goldman Sachs Group dropped their price target on PayPal from $72.00 to $65.00 and set a “sell” rating on the stock in a research note on Tuesday, January 6th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of PayPal in a report on Wednesday, October 8th. Twelve research analysts have rated the stock with a Buy rating, twenty-seven have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, PayPal has a consensus rating of “Hold” and an average price target of $75.84.

PayPal Trading Down 3.2%

The firm has a market cap of $51.54 billion, a price-to-earnings ratio of 11.04, a P/E/G ratio of 0.71 and a beta of 1.42. The firm’s 50-day moving average is $60.38 and its 200-day moving average is $66.61. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56.

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

PayPal Announces Dividend

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

Insider Buying and Selling

In other news, EVP Diego Scotti sold 3,838 shares of the firm’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $68.97, for a total value of $264,706.86. Following the transaction, the executive vice president owned 16,989 shares in the company, valued at $1,171,731.33. This trade represents a 18.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total value of $249,054.08. Following the sale, the insider owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This trade represents a 11.84% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 36,156 shares of company stock valued at $2,432,524. 0.08% of the stock is owned by company insiders.

Institutional Trading of PayPal

A number of large investors have recently added to or reduced their stakes in PYPL. Norges Bank bought a new stake in shares of PayPal in the second quarter valued at approximately $921,570,000. Dimensional Fund Advisors LP grew its stake in PayPal by 35.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock valued at $548,520,000 after buying an additional 2,160,227 shares in the last quarter. Lazard Asset Management LLC grew its stake in PayPal by 1,066.0% in the 2nd quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock valued at $156,532,000 after buying an additional 1,925,583 shares in the last quarter. Two Sigma Investments LP bought a new stake in PayPal during the 3rd quarter valued at $97,794,000. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of PayPal by 45.0% during the second quarter. Arrowstreet Capital Limited Partnership now owns 3,569,023 shares of the credit services provider’s stock worth $265,250,000 after acquiring an additional 1,107,202 shares in the last quarter. Hedge funds and other institutional investors 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.