PayPal (NASDAQ:PYPL) Sets New 52-Week Low After Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) shares hit a new 52-week low during mid-day trading on Thursday after Rothschild & Co Redburn lowered their price target on the stock from $50.00 to $32.00. Rothschild & Co Redburn currently has a sell rating on the stock. PayPal traded as low as $38.49 and last traded at $38.6710, with a volume of 13040611 shares changing hands. The stock had previously closed at $40.46.

A number of other equities analysts also recently issued reports on the company. Cantor Fitzgerald cut their target price on PayPal from $60.00 to $42.00 and set a “neutral” rating for the company in a research note on Monday. BTIG Research reaffirmed a “neutral” rating on shares of PayPal in a research note on Tuesday, February 3rd. TD Cowen reissued a “hold” rating on shares of PayPal in a report on Tuesday, February 3rd. KGI Securities dropped their target price on shares of PayPal from $85.00 to $80.00 in a report on Monday, November 10th. Finally, BNP Paribas Exane decreased their price target on PayPal from $71.00 to $69.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 2nd. Ten research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $61.03.

Insider Buying and Selling

In related news, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the transaction, the insider owned 30,983 shares in the company, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Frank Keller sold 3,478 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $40.20, for a total transaction of $139,815.60. Following the sale, the executive vice president directly owned 51,567 shares of the company’s stock, valued at approximately $2,072,993.40. This trade represents a 6.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.08% of the company’s stock.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Partnership: PayPal teamed with Sabre and Mindtrip to build an end‑to‑end agentic AI travel experience — a commercial partnership that could open new travel payments volume and enterprise use cases if it scales. Sabre, PayPal, and Mindtrip partner to deliver the industry’s first end-to-end agentic AI experience for travel
• Neutral Sentiment: Leadership/strategy: PayPal named Enrique Lores (ex‑HP) as CEO to replace Alex Chriss; coverage notes a renewed push into embedded/automotive payments and a strategy reset — potential long‑term positives but execution and timing are uncertain. PayPal Shifts Gears With New CEO And Automotive Payments Push
• Negative Sentiment: Earnings and outlook: Q4 revenue and EPS missed expectations and management cited disappointing execution, which precipitated the leadership change and undermined investor confidence. PayPal Holdings, Inc. (PYPL) Faces Pressure as Revenue Falls Short and CEO Change Looms
• Negative Sentiment: Analyst downgrades and sell signals: Multiple firms have turned negative — Rothschild & Co Redburn cut its price target to $32 and kept a sell rating; Zacks added PYPL to its Strong Sell list; Cantor Fitzgerald and Truist issued pessimistic notes — increasing near‑term downside risk. Rothschild & Co Redburn adjusts price target on PayPal to $32 from $50, maintains sell rating New Strong Sell Stocks for February 12th
• Negative Sentiment: Investigation risk: Law firm Kessler Topaz is investigating potential securities‑law violations tied to the surprise CEO replacement and the company’s disclosures around Q4, adding legal overhang. NASDAQ: PYPL Investigation Alert – Kessler Topaz Meltzer & Check, LLP Encourages PayPal Investors to Contact the Firm

Institutional Investors Weigh In On PayPal

Large investors have recently added to or reduced their stakes in the company. MUFG Securities EMEA plc increased its holdings in PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 87,524 shares during the last quarter. Kelleher Financial Advisors bought a new stake in shares of PayPal in the third quarter worth $30,000. Cloud Capital Management LLC acquired a new stake in PayPal in the third quarter valued at $30,000. VSM Wealth Advisory LLC bought a new position in PayPal during the 2nd quarter valued at $36,000. Finally, Total Investment Management Inc. bought a new position in PayPal during the 2nd quarter valued at $38,000. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Stock Performance

The company’s fifty day simple moving average is $55.91 and its two-hundred day simple moving average is $63.59. The company has a market capitalization of $35.64 billion, a price-to-earnings ratio of 7.15, a price-to-earnings-growth ratio of 1.07 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.

PayPal (NASDAQ:PYPL) last posted 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 firm had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter last year, the business posted $1.19 earnings per share. The firm’s revenue for the quarter was up 4.0% on a year-over-year basis. Equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given 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 of this dividend is Wednesday, March 4th. PayPal’s dividend payout ratio is currently 10.35%.

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.