Paypal (PYPL) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research downgraded shares of Paypal (NASDAQ:PYPL) from a buy rating to a hold rating in a research report released on Monday.
According to Zacks, “PayPal reported strong fourth-quarter 2017 results driven by record customer account addition, accelerated push into mobile and significant increase in total payments volume. Quarterly revenues and earnings both came above the company’s expectations. PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers. Partnerships with Google, Facebook, Pinterest, Alibaba, Intuit and other major retailers and financial institutions are also delivering positive results. However, eBay’s decision to select Adyen as its new primary payment processor doesn’t bode well for PayPal. Notably, eBay accounts for 13% of PayPal’s total payment volume (TPV), thereby contributing a major portion to its total revenues. Moreover, continuous exposure to foreign exchange and interest rate risks are concerns. Over the last one year, the stock has outperformed the industry it belongs to.”
Several other analysts also recently weighed in on the company. Wells Fargo & Co upgraded Paypal from a market perform rating to an outperform rating and set a $70.00 target price for the company in a research note on Monday. Vetr upgraded Paypal from a hold rating to a buy rating and set a $86.65 target price for the company in a research note on Thursday, February 1st. Citigroup restated a buy rating and set a $90.00 target price on shares of Paypal in a research note on Thursday, February 1st. Cantor Fitzgerald restated a buy rating and set a $85.00 target price on shares of Paypal in a research note on Thursday, February 1st. Finally, Guggenheim restated a buy rating on shares of Paypal in a research note on Thursday, February 1st. Nine equities research analysts have rated the stock with a hold rating, thirty-four have issued a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $77.04.
Paypal (NASDAQ:PYPL) last released its quarterly earnings data on Wednesday, January 31st. The credit services provider reported $0.55 EPS for the quarter, beating the consensus estimate of $0.52 by $0.03. Paypal had a return on equity of 11.59% and a net margin of 13.71%. The company had revenue of $3.74 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same period last year, the company posted $0.42 earnings per share. The firm’s revenue was up 25.6% compared to the same quarter last year. analysts anticipate that Paypal will post 1.75 EPS for the current fiscal year.
In other Paypal news, VP Aaron Anderson sold 9,367 shares of Paypal stock in a transaction that occurred on Friday, February 2nd. The stock was sold at an average price of $77.84, for a total value of $729,127.28. Following the completion of the transaction, the vice president now directly owns 18,480 shares in the company, valued at $1,438,483.20. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Adele Louise Pentland sold 6,000 shares of Paypal stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $78.11, for a total value of $468,660.00. Following the completion of the transaction, the executive vice president now owns 46,045 shares of the company’s stock, valued at $3,596,574.95. The disclosure for this sale can be found here. Insiders sold 126,344 shares of company stock valued at $9,818,481 over the last quarter. Insiders own 6.00% of the company’s stock.
A number of hedge funds have recently modified their holdings of the business. Westside Investment Management Inc. boosted its stake in Paypal by 0.4% in the second quarter. Westside Investment Management Inc. now owns 13,849 shares of the credit services provider’s stock valued at $761,000 after acquiring an additional 60 shares during the period. Linscomb & Williams Inc. boosted its stake in Paypal by 0.7% in the second quarter. Linscomb & Williams Inc. now owns 16,248 shares of the credit services provider’s stock valued at $872,000 after acquiring an additional 117 shares during the period. Green Square Capital LLC boosted its stake in Paypal by 2.0% in the second quarter. Green Square Capital LLC now owns 6,748 shares of the credit services provider’s stock valued at $362,000 after acquiring an additional 133 shares during the period. Albion Financial Group UT boosted its stake in Paypal by 1.4% in the second quarter. Albion Financial Group UT now owns 10,682 shares of the credit services provider’s stock valued at $573,000 after acquiring an additional 145 shares during the period. Finally, Monetary Management Group Inc. boosted its stake in Paypal by 0.5% in the second quarter. Monetary Management Group Inc. now owns 63,600 shares of the credit services provider’s stock valued at $3,413,000 after acquiring an additional 325 shares during the period. Institutional investors own 82.46% of the company’s stock.
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PayPal Holdings, Inc is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants. The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant products, compose its Payments Platform.
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