PayPal (NASDAQ:PYPL) Stock Price Down 1% – Time to Sell?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price dropped 1% during mid-day trading on Wednesday . The company traded as low as $57.91 and last traded at $57.93. 8,418,803 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 19,331,930 shares. The stock had previously closed at $58.54.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Strong quarterly performance and higher guidance: PayPal reported second-quarter revenue of $8.68 billion and non-GAAP EPS of $1.38, exceeding consensus estimates, while raising its 2026 outlook. Investors are also watching progress in revitalizing checkout, monetizing Venmo and returning Braintree to profitable growth. PayPal acquisition interest and quarterly performance
• Positive Sentiment: New business-unit targets could improve accountability: PayPal plans to establish revenue targets for its three core business units for the first time, giving investors greater visibility into growth and management execution. PayPal sets revenue targets for three business units
• Positive Sentiment: Analyst support: Cantor Fitzgerald raised its PayPal price target to $60, and the stock was also reported higher following an analyst upgrade, reinforcing the view that the company’s valuation may be too low. Cantor Fitzgerald raises PayPal price target
• Neutral Sentiment: Stablecoin opportunity: PayPal’s stablecoin initiatives could expand its role in digital payments, although the long-term revenue and profitability impact remain uncertain. Stablecoin market article
• Negative Sentiment: Takeover expectations may be tempering gains: Reports that PayPal considers Stripe’s potential offer too low could disappoint investors hoping for a premium acquisition, even though rejecting a low bid may signal management believes the company is worth more. PayPal and Stripe offer
• Negative Sentiment: Cost and insider-sale concerns: Rising technology costs and pressure on consumer spending could weigh on margins, while PayPal’s chief accounting officer recently sold 38% of his directly held shares. Neither item necessarily changes the long-term thesis, but both may add short-term caution. PayPal insider share sale

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Canaccord Genuity Group reaffirmed a “hold” rating and set a $55.00 price target on shares of PayPal in a research note on Wednesday, July 29th. Zacks Research upgraded PayPal from a “strong sell” rating to a “hold” rating in a report on Friday, April 17th. Keefe, Bruyette & Woods increased their target price on PayPal from $55.00 to $70.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. UBS Group set a $45.00 target price on PayPal in a report on Wednesday, July 29th. Finally, Citigroup boosted their price target on PayPal from $48.00 to $61.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $55.72.

PayPal Stock Performance

The stock’s 50 day moving average price is $47.59 and its 200 day moving average price is $47.04. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The firm has a market cap of $49.56 billion, a PE ratio of 10.95, a P/E/G ratio of 1.43 and a beta of 1.30.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.47 billion. During the same period in the prior year, the company earned $1.40 EPS. The firm’s revenue was up 4.8% on a year-over-year basis. As a group, equities analysts forecast that PayPal Holdings, Inc. will post 5.36 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, September 4th. PayPal’s payout ratio is currently 10.59%.

Insider Transactions at PayPal

In other news, insider Frank Keller sold 732 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $42,529.20. Following the completion of the sale, the insider owned 41,567 shares in the company, valued at approximately $2,415,042.70. This trade represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider owned 30,983 shares in the company, valued at approximately $1,325,762.57. The trade was a 9.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 10,612 shares of company stock valued at $484,534 over the last quarter. Company insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Bard Associates Inc. purchased a new position in shares of PayPal in the fourth quarter valued at $25,000. Allied Private Wealth LLC acquired a new position in PayPal in the 2nd quarter worth $25,000. Robinswood Financial LLC acquired a new position in PayPal in the 1st quarter worth $26,000. Caitong International Asset Management Co. Ltd boosted its position 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 valued at $27,000 after buying an additional 457 shares during the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new position in PayPal in the 4th quarter valued at about $28,000. 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.