PayPal (NASDAQ:PYPL) Trading Down 1.9% – What’s Next?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price dropped 1.9% during trading on Monday . The company traded as low as $60.15 and last traded at $60.47. Approximately 9,068,368 shares traded hands during trading, a decline of 52% from the average daily volume of 18,847,711 shares. The stock had previously closed at $61.66.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on PYPL shares. BMO Capital Markets began coverage on PayPal in a research note on Tuesday, April 21st. They issued a “market perform” rating and a $52.00 price target for the company. Keefe, Bruyette & Woods increased their target price on PayPal from $55.00 to $70.00 and gave the company an “outperform” rating in a research report on Wednesday, July 29th. The Goldman Sachs Group set a $50.00 price objective on shares of PayPal in a research note on Tuesday, July 28th. JPMorgan Chase & Co. upped their price objective on shares of PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Finally, Barclays lifted their target price on PayPal from $55.00 to $57.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $56.19.

PayPal Price Performance

The firm has a market cap of $51.73 billion, a price-to-earnings ratio of 11.43, a P/E/G ratio of 1.51 and a beta of 1.29. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The business has a 50 day simple moving average of $50.13 and a 200-day simple moving average of $47.21.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. The business had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.PayPal’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.40 EPS. Equities research analysts expect that PayPal Holdings, Inc. will post 5.37 earnings per share for the current year.

PayPal Dividend Announcement

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 given a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 annualized dividend and a yield of 0.9%. PayPal’s payout ratio is currently 10.59%.

Insider Buying and Selling

In related news, CAO Chris Natali sold 1,337 shares of the company’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer owned 2,216 shares in the company, valued at approximately $128,749.60. This represents a 37.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the transaction, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. This represents a 9.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Bard Associates Inc. bought a new position in shares of PayPal in the fourth quarter valued at approximately $25,000. Allied Private Wealth LLC bought a new stake in PayPal during the second quarter worth about $25,000. Robinswood Financial LLC bought a new stake in PayPal in the 1st quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of 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 purchasing an additional 457 shares in the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new stake in PayPal during the second quarter valued at about $27,000. 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.