PayPal (NASDAQ:PYPL) Trading 1.3% Higher – Here’s What Happened

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) were up 1.3% during trading on Tuesday . The company traded as high as $41.60 and last traded at $40.81. Approximately 20,279,787 shares were traded during trading, a decline of 17% from the average daily volume of 24,542,354 shares. The stock had previously closed at $40.29.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analyst bullish case — a Seeking Alpha piece argues PayPal remains a “buy” at a reduced target, citing diversification across Venmo, PSP, Omni and BNPL, and very low valuation multiples (P/E ~7.5) that may offer downside protection and upside if execution stabilizes. PayPal: Despite Uncertainty, Stock Remains A Buy
• Neutral Sentiment: Partner integration news — OLB Group announced a global partner agreement to integrate PayPal checkout/wallet into its gateway; this expands distribution but is more meaningful for OLB than for PayPal’s core scale. OLB Group Stock Skyrockets On PayPal Partnership
• Neutral Sentiment: Mixed fundamentals read — Zacks highlights Q4 transaction revenue growth but a lower take rate and a flat 2026 total payment volume outlook, which clouds near‑term growth expectations even as some margins/metrics remain attractive. PYPL’s Transaction Revenues: Will it Pave the Way or Hinder Growth?
• Neutral Sentiment: Comparative view — The Motley Fool piece frames PayPal as deep‑value but higher risk versus faster‑growth fintech peers; useful context for investors weighing valuation vs. execution risk. Better Fintech Stock: PayPal vs. SoFi
• Negative Sentiment: Multiple class‑action and investigation notices — Several law firms (Levi & Korsinsky, Pomerantz, Robbins LLP, Howard G. Smith, RGRD Law and others) have filed or opened investigations and shareholder alerts alleging PayPal misled investors about revenue/growth projections for the Feb 25, 2025–Feb 2, 2026 class period; Levi & Korsinsky set an April 20, 2026 lead‑plaintiff deadline. This litigation wave raises potential legal costs, distraction, and settlement risk that can pressure the stock. SHAREHOLDER ALERT-Levi-Korsinsky-LLP-Notifies-Investors-It-Has-Filed-a-Complaint… INVESTOR ALERT: PayPal Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead the PayPal Class Action Lawsuit – RGRD Law

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on PYPL shares. Keefe, Bruyette & Woods lifted their price target on shares of PayPal from $85.00 to $90.00 and gave the company an “outperform” rating in a research report on Wednesday, October 29th. Daiwa Securities Group dropped their price objective on PayPal from $61.00 to $42.00 and set a “neutral” rating for the company in a research note on Tuesday, February 10th. Stephens decreased their target price on PayPal from $65.00 to $45.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 4th. Bank of America reissued a “neutral” rating and issued a $68.00 target price (down previously from $93.00) on shares of PayPal in a report on Thursday, December 11th. Finally, BNP Paribas Exane cut their price target on PayPal from $71.00 to $69.00 and set a “neutral” rating for the company in a research note on Tuesday, December 2nd. Nine analysts have rated the stock with a Buy rating, thirty have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $61.03.

PayPal Price Performance

The company has a market capitalization of $37.57 billion, a price-to-earnings ratio of 7.54, a P/E/G ratio of 1.04 and a beta of 1.43. The company has a fifty day simple moving average of $54.60 and a two-hundred day simple moving average of $62.85. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.29 and a current ratio of 1.29.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.PayPal’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.19 EPS. As a group, research analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

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 issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Wednesday, March 4th. PayPal’s dividend payout ratio is presently 10.35%.

Insider Activity at PayPal

In related news, EVP Frank Keller sold 3,478 shares of PayPal stock in a transaction on Friday, February 6th. The stock was sold at an average price of $40.20, for a total value of $139,815.60. Following the transaction, the executive vice president owned 51,567 shares in the company, valued at approximately $2,072,993.40. This trade represents a 6.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the business’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the sale, the insider directly owned 30,983 shares of the company’s stock, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PayPal

Several hedge funds and other institutional investors have recently modified their holdings of PYPL. Wedmont Private Capital lifted its position in PayPal by 1.6% during the third quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider’s stock valued at $614,000 after buying an additional 142 shares in the last quarter. Dakota Community Bank & Trust NA raised its stake 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 acquiring an additional 147 shares during the period. Maia Wealth LLC raised its stake 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 acquiring an additional 155 shares during the period. Transatlantique Private Wealth LLC lifted its holdings 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 valued at $382,000 after acquiring an additional 159 shares in the last quarter. Finally, WCG Wealth Advisors LLC boosted its position in PayPal by 1.1% during the 2nd 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 during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

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.