PayPal (NASDAQ:PYPL) Trading 1.9% Higher – Still a Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL) shares shot up 1.9% during trading on Thursday . The stock traded as high as $47.92 and last traded at $47.64. 18,293,170 shares traded hands during trading, a decline of 31% from the average session volume of 26,623,131 shares. The stock had previously closed at $46.75.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Partnership expands PYUSD use case — PayPal announced a collaboration with TCS Blockchain to enable digital‑asset settlement of freight invoices, giving PYUSD a concrete B2B payments path that could drive incremental transaction volume and fees. Read More.
• Positive Sentiment: Stablecoin narrative supports adoption — industry coverage notes PYUSD’s growing relevance as the stablecoin market concentrates around a few large players, which helps PayPal’s strategic case for wallet and settlement growth. Read More.
• Positive Sentiment: Recent analyst attention and modest targets create tactical buying — Bank of America initiated coverage with a neutral rating and a $48 target (near current levels), which can attract traders looking for a rebound off the post‑earnings low.
• Neutral Sentiment: Valuation/coverage debate keeps shares volatile — Several pieces are re‑examining PayPal’s valuation after a sharp reset in shareholder returns; this fuels trading volume and back‑and‑forth analyst calls rather than a clear directional thesis. Read More.
• Negative Sentiment: Legal overhang — Multiple law firms have filed or solicited plaintiffs for securities class actions tied to PayPal’s guidance and the Q4 results (lead‑plaintiff deadline Apr 20, 2026), creating potential settlement risk and management distraction. Read More.
• Negative Sentiment: Insider selling — SEC filings show meaningful sales by senior executives (EVP Frank Keller and others, plus CAO Chris Natali), which investors often view as a negative signal for near‑term insider confidence. Read More.
• Negative Sentiment: Earnings miss remains a drag — PayPal’s Q4 revenue and EPS shortfall pushed shares to a 12‑month low and is still cited by skeptics as evidence execution must improve before multiple expansion. Read More.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on PYPL. BTIG Research reaffirmed a “neutral” rating on shares of PayPal in a research report on Tuesday, February 3rd. HSBC cut shares of PayPal from a “buy” rating to a “hold” rating and set a $47.00 target price on the stock. in a research note on Wednesday, February 4th. Argus reduced their price target on shares of PayPal from $87.00 to $65.00 and set a “buy” rating for the company in a research note on Friday, February 6th. Citigroup lowered their price objective on shares of PayPal from $60.00 to $42.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 4th. Finally, Dbs Bank upgraded shares of PayPal to a “hold” rating in a report on Friday, February 6th. Eight analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $59.03.

PayPal Trading Up 1.9%

The company has a market capitalization of $43.86 billion, a P/E ratio of 8.81, a PEG ratio of 1.08 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.29 and a current ratio of 1.29. The stock has a fifty day moving average of $50.77 and a 200 day moving average of $60.89.

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

PayPal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be paid a $0.14 dividend. 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 1.2%. PayPal’s dividend payout ratio is 10.35%.

Insider Activity at PayPal

In other PayPal news, insider Suzan Kereere sold 37,613 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total transaction of $1,560,563.37. Following the sale, the insider directly owned 30,983 shares of the company’s stock, valued at $1,285,484.67. This trade represents a 54.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Frank Keller sold 29,581 shares of the company’s stock in a transaction dated 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 completion of the transaction, the executive vice president directly owned 51,567 shares of the company’s stock, valued at approximately $2,373,113.34. This trade represents a 36.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 87,608 shares of company stock worth $3,831,535. 0.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PYPL. Bard Associates Inc. bought a new position in shares of PayPal during the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd lifted its stake in PayPal by 15,233.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock worth $27,000 after purchasing an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC bought a new position in shares of PayPal during the 4th quarter valued at about $28,000. Cloud Capital Management LLC purchased a new position in shares of PayPal during the third quarter valued at about $30,000. Finally, Kelleher Financial Advisors bought a new stake in shares of PayPal in the third quarter worth about $30,000. 68.32% of the stock is currently owned by institutional investors.

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.