Key Points
- PayPal CAO Chris Natali sold 1,213 shares on Feb. 17 at an average price of $40.49 (~$49,114), reducing his position by 75% to 404 shares.
- Recent results were softer: Q4 EPS of $1.23 missed estimates ($1.29) and revenue was $8.68B versus $8.82B, yet the stock trades at a low multiple (P/E ~7.66) with an average analyst target of $61.03.
- Near‑term headwinds include multiple securities‑litigation filings, analyst downgrades (Truist PT $39), a CEO transition and intensifying competition—factors that, along with insider selling, raise execution and legal risk.
PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) CAO Chris Natali sold 1,213 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $40.49, for a total value of $49,114.37. Following the sale, the chief accounting officer owned 404 shares in the company, valued at approximately $16,357.96. The trade was a 75.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.
PayPal Stock Up 1.6%
PYPL stock opened at $41.45 on Thursday. PayPal Holdings, Inc. has a 52-week low of $38.46 and a 52-week high of $79.50. The company's 50 day simple moving average is $53.80 and its 200-day simple moving average is $62.52. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $38.16 billion, a P/E ratio of 7.66, a P/E/G ratio of 1.06 and a beta of 1.43.
PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data 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 period in the prior year, the business posted $1.19 EPS. The company's revenue for the quarter was up 4.0% on a year-over-year basis. As a group, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current year.
PayPal Dividend Announcement
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 $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.4%. The ex-dividend date is Wednesday, March 4th. PayPal's dividend payout ratio is currently 10.35%.
Key Stories Impacting PayPal
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: Valuation/contrarian case — Analysts and commentary note PYPL's P/E is near decade lows, arguing the stock may be deeply discounted for a profitable, cash‑generating payments business; this frames a potential value‑buy scenario for long‑term investors. PayPal’s P/E Is Its Lowest in Over a Decade - Too Good to Ignore?
- Positive Sentiment: Buy-side contrarian views — Several independent analysts and Seeking Alpha pieces maintain that PYPL is “mispriced” or remains a buy at reduced targets, citing diversified product streams (Venmo, BNPL, PSP) and low valuation multiples as upside catalysts. PayPal: Despite Uncertainty, Stock Remains A Buy
- Neutral Sentiment: Mixed commentary on sell‑off — Industry pieces (Fool, MarketBeat) debate whether the recent ~20% sell‑off is an opportunity or reflects structural headwinds; view is split between value hunters and those worried about secular pressure. Bear Market Sell-Off: Is PayPal Stock a Buy After Its 20% Plunge?
- Neutral Sentiment: Partnership noise — A small merchant/partner (OLB) announced integration with PayPal, driving micro‑cap moves in that partner; limited direct impact on PayPal’s fundamentals but highlights ecosystem demand. OLB Group Stock Skyrockets On PayPal Partnership
- Negative Sentiment: Mass of securities‑litigation filings and investor alerts — Multiple law firms have announced class actions and investigations alleging misstatements around growth and guidance for a roughly one‑year class period; this increases legal risk, potential costs and near‑term uncertainty. PYPL Investors Have Opportunity to Lead PayPal Holdings, Inc. Securities Fraud Lawsuit with the Schall Law Firm
- Negative Sentiment: Analyst downgrade / estimate cuts — Truist recently cut estimates and lowered its PT to $39 (Sell), citing slower volume and take‑rate compression; that reduces near‑term sentiment and raises the bar for positive catalysts. Truist Lowers PayPal (PYPL) Estimates Due to Slower Volume, Take Rate Compression
- Negative Sentiment: Insider selling and leadership turnover — PayPal disclosed a sizable CAO share sale and announced a CEO exit/transition; insider selling and management change amid weak results amplify execution risk in the near term. Insider sale SEC filing
- Negative Sentiment: Competitive pressure narrative — Commentators (including Jim Cramer coverage) point to rising competition from Apple Pay, Stripe, etc., pressuring branded checkout and margins—key headwind for revenue growth and take rates. PayPal (PYPL) is Facing Stiff Competition From Apple, Believes Jim Cramer
Wall Street Analysts Forecast Growth
A number of equities analysts have recently weighed in on the stock. Mizuho set a $60.00 price target on shares of PayPal in a research note on Wednesday, February 4th. UBS Group reissued a "neutral" rating and set a $44.00 price objective on shares of PayPal in a research report on Wednesday, February 4th. Keefe, Bruyette & Woods upped their target price on PayPal from $85.00 to $90.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 29th. BTIG Research reaffirmed a "neutral" rating on shares of PayPal in a research note on Tuesday, February 3rd. Finally, Citizens Jmp reiterated a "market perform" rating on shares of PayPal in a report on Wednesday, February 4th. Nine research analysts have rated the stock with a Buy rating, thirty have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $61.03.
View Our Latest Analysis on PayPal
Institutional Investors Weigh In On PayPal
A number of large investors have recently added to or reduced their stakes in PYPL. Bard Associates Inc. acquired a new position in PayPal during the 4th quarter worth $25,000. Caitong International Asset Management Co. Ltd increased its stake in shares of PayPal by 15,233.3% in 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 period. Safe Harbor Fiduciary LLC acquired a new position in shares of PayPal during the 4th quarter worth about $28,000. MUFG Securities EMEA plc boosted 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 valued at $29,000 after purchasing an additional 87,524 shares during the period. Finally, Cloud Capital Management LLC acquired a new stake in PayPal in the 3rd quarter valued at approximately $30,000. Institutional investors own 68.32% of the company's stock.
About PayPal
(
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
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