PayPal (NASDAQ:PYPL) Trading 1.6% Higher – Should You Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL) shares were up 1.6% on Thursday . The company traded as high as $45.42 and last traded at $45.34. Approximately 12,716,919 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 23,811,078 shares. The stock had previously closed at $44.63.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Expanded merchant reach in Europe via a deeper PayPal–Nexi integration could support top‑line growth and merchant take‑rates in the region, giving investors a tangible execution catalyst. PayPal Nexi Tie Tests Growth
• Neutral Sentiment: Loop Capital initiated coverage with a Hold and $46 target, highlighting execution risks, margin pressure and stagnant EPS — a formal stamp of caution that frames near‑term expectations but keeps PYPL on the radar for value investors. Loop Capital Initiates Coverage on PayPal
• Neutral Sentiment: Discussion of PYPL as a “value” setup and some technical bullish patterns (breakout levels near $45.50) is attracting trader interest; this can boost short‑term buying but doesn’t eliminate fundamental risks. QuiverQuant Coverage Summary
• Negative Sentiment: Multiple securities‑fraud class actions have been filed following a surprise CEO change and the withdrawal of long‑term financial targets; these actions raise legal, financial and reputational risk and have pressured sentiment and valuation. PayPal Lawsuits And CEO Shakeup Put Focus On Valuation Gap
• Negative Sentiment: Labaton Keller Sucharow filed an expanded securities class action on April 2 naming PayPal and certain executives — a new, specific filing that increases litigation momentum and potential damages/defense costs. Labaton Keller Sucharow Announces Expanded Securities Class Action
• Negative Sentiment: Multiple plaintiff firms (Pomerantz, Rosen, Hagens Berman, Levi & Korsinsky, Glancy, etc.) are soliciting lead plaintiffs and reminding investors of deadlines, signaling broad litigation activity and ongoing publicity risk. Pomerantz Investor Alert on PYPL
• Negative Sentiment: Insider selling (no recent purchases) and large institutional exits — notably UBS AM’s ~21.9M‑share reduction — increase supply pressure and signal waning conviction among some holders. That selling amplifies downside risk amid the legal cloud. QuiverQuant Insider & Institutional Activity

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Zacks Research lowered shares of PayPal from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. TD Cowen reaffirmed a “hold” rating on shares of PayPal in a report on Tuesday, February 3rd. BTIG Research reiterated a “neutral” rating on shares of PayPal in a research report on Tuesday, February 3rd. Needham & Company LLC restated a “hold” rating on shares of PayPal in a research report on Tuesday, February 3rd. Finally, Susquehanna reduced their target price on PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a research note on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, PayPal currently has a consensus rating of “Hold” and a consensus price target of $58.11.

PayPal Stock Performance

The company has a market capitalization of $41.74 billion, a PE ratio of 8.38, a price-to-earnings-growth ratio of 1.35 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’s fifty day simple moving average is $45.63 and its 200-day simple moving average is $57.58.

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). The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The business’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.19 earnings per share. As a group, equities analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th were paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Wednesday, March 4th. PayPal’s payout ratio is presently 10.35%.

Insider Buying and Selling at PayPal

In other news, EVP Frank Keller sold 29,581 shares of PayPal stock in a transaction on 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 sale, the executive vice president owned 51,567 shares of the company’s stock, valued at $2,373,113.34. The trade was a 36.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Chris Natali sold 2,208 shares of the company’s stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total value of $98,763.84. Following the completion of the transaction, the chief accounting officer owned 1,140 shares of the company’s stock, valued at $50,992.20. The trade was a 65.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 87,608 shares of company stock worth $3,831,535. Insiders own 0.08% of the company’s stock.

Institutional Trading of PayPal

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bard Associates Inc. acquired a new stake in shares of PayPal in the fourth quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd increased its position in PayPal by 15,233.3% during the fourth 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 during the last quarter. Safe Harbor Fiduciary LLC purchased a new position in PayPal during the fourth quarter worth approximately $28,000. Cloud Capital Management LLC purchased a new position in PayPal during the third quarter worth approximately $30,000. Finally, Kelleher Financial Advisors acquired a new position in shares of PayPal in the 3rd quarter valued at $30,000. 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.