Key Points
- EVP Frank Keller sold 3,478 shares on Feb. 6 at $40.20 for a total of $139,815.60, cutting his stake by 6.32% to 51,567 shares (worth ≈$2.07M).
- PayPal missed Q4 estimates (EPS $1.23 vs. $1.29 expected; revenue $8.68B vs. $8.82B), with revenue up 4% YoY and the stock trading well below its 12‑month high (market cap ≈$37.9B, P/E 7.61).
- Analysts have trimmed targets (e.g., Bernstein to $45, Cantor to $42) and an active securities investigation by Levi & Korsinsky adds legal/volatility risk; the company also announced a $0.14 quarterly dividend (≈1.4% yield).
PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) EVP Frank Keller sold 3,478 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $40.20, for a total transaction of $139,815.60. Following the completion of the transaction, the executive vice president directly owned 51,567 shares in the company, valued at approximately $2,072,993.40. This represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.
PayPal Stock Up 1.8%
Shares of NASDAQ PYPL opened at $41.15 on Tuesday. The stock has a market cap of $37.89 billion, a PE ratio of 7.61, a P/E/G ratio of 0.79 and a beta of 1.43. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. PayPal Holdings, Inc. has a 12-month low of $38.88 and a 12-month high of $79.50. The company has a 50-day moving average of $56.75 and a 200 day moving average of $64.01.
PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The business had revenue of $8.68 billion during 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 company's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period last year, the business earned $1.19 earnings per share. As a group, sell-side analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.
PayPal Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be paid a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.4%. PayPal's payout ratio is 10.35%.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently modified their holdings of the company. MUFG Securities EMEA plc lifted its stake 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 acquiring an additional 87,524 shares in the last quarter. Kelleher Financial Advisors acquired a new stake in shares of PayPal during the third quarter worth about $30,000. Cloud Capital Management LLC purchased a new position in shares of PayPal in the third quarter valued at approximately $30,000. VSM Wealth Advisory LLC acquired a new position in shares of PayPal in the second quarter valued at approximately $36,000. Finally, Total Investment Management Inc. purchased a new stake in PayPal during the 2nd quarter worth approximately $38,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.
Key PayPal News
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: Several bullish pieces argue the stock is oversold and present buying opportunities, which can attract value‑oriented investors and short‑covering demand. Read More.
- Positive Sentiment: Another Seeking Alpha piece lays out why the recent sell‑off may be overextended and highlights what could drive a rebound, supporting short‑term buying interest. Read More.
- Neutral Sentiment: Zacks flags PYPL as a trending/most‑watched stock, which can boost trading volume but doesn’t change fundamentals. Read More.
- Neutral Sentiment: Argus trimmed its price target to $65 — a reduction but still above current levels; this is mixed news (smaller long‑term signal than the larger cuts below). Read More.
- Negative Sentiment: Sanford C. Bernstein slashed its price target to $45 and moved to Market Perform, reducing analyst support and adding downward pressure. Read More.
- Negative Sentiment: Cantor Fitzgerald cut its target to $42 and kept a Neutral rating, further trimming expectations and limiting near‑term upside. Read More.
- Negative Sentiment: PayPal is facing an active securities investigation announced by Levi & Korsinsky, which raises legal/financial risk and can prolong volatility. Read More.
- Negative Sentiment: An EVP, Frank Keller, sold ~3,478 shares (~6.3% reduction in his position) — insider selling can be read negatively even if not large relative to total float. Read More.
- Negative Sentiment: Critical commentary asks how PayPal can turn its business around, reflecting investor concern about execution and growth — a sentiment headwind. Read More.
Wall Street Analyst Weigh In
Several research analysts have recently weighed in on PYPL shares. Weiss Ratings reissued a "hold (c)" rating on shares of PayPal in a research report on Thursday, January 22nd. Dbs Bank decreased their target price on shares of PayPal from $75.00 to $70.00 and set a "hold" rating on the stock in a report on Thursday, November 13th. Cantor Fitzgerald cut their price target on shares of PayPal from $60.00 to $42.00 and set a "neutral" rating for the company in a report on Monday. Keefe, Bruyette & Woods lifted their price target on shares of PayPal from $85.00 to $90.00 and gave the company an "outperform" rating in a research report on Wednesday, October 29th. Finally, Bank of America reiterated a "neutral" rating and issued a $68.00 price objective (down from $93.00) on shares of PayPal in a research report on Thursday, December 11th. Ten equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $62.46.
Get Our Latest Analysis on PayPal
PayPal Company Profile
(
Get Free Report)
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.
Further Reading
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
