PayPal (NASDAQ:PYPL) Stock Price Down 1.2% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL) was down 1.2% during trading on Thursday . The company traded as low as $58.92 and last traded at $59.44. Approximately 23,526,021 shares changed hands during mid-day trading, an increase of 87% from the average daily volume of 12,600,109 shares. The stock had previously closed at $60.18.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Company structure and cash flow support continued aggressive buybacks, which can reduce share count and boost EPS — a bullish catalyst for valuation. Read More.
• Positive Sentiment: PayPal is expanding PYUSD stablecoin use into on‑chain funding for AI projects (loans for GPUs, data centers), which could open new revenue/financing channels and differentiate its fintech stack. Read More.
• Positive Sentiment: Coverage highlights PayPal’s strong free cash flow and margins — fundamentals that underpin buybacks, dividend optionality and valuation support if growth stabilizes. Read More.
• Neutral Sentiment: PayPal’s pursuit of an industrial loan company (ILC) / Utah bank charter is being debated as either a strategic upgrade to expand lending/digital‑banking capabilities or a potential distraction; impacts depend on execution and regulatory timing. Read More.
• Neutral Sentiment: Analyst and media coverage (Zacks, Globe and Mail, The Motley Fool) is keeping PYPL in focus—some articles highlight investor attention and portfolio inclusion, which can support liquidity but not immediately move fundamentals. Read More.
• Negative Sentiment: Multiple analyst downgrades this week (including Morgan Stanley cutting to Underweight and slashing its price target sharply) cite slow progress on branded checkout integrations and persistent Venmo monetization issues — these calls have been a primary driver of near‑term selling pressure. Read More.
• Negative Sentiment: Market commentary points to growing Wall Street bearishness after recent cuts, increasing the risk of further multiple compression unless growth or execution data improves. Read More.

Analysts Set New Price Targets

PYPL has been the topic of a number of analyst reports. UBS Group upped their price target on shares of PayPal from $75.00 to $80.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 29th. Keefe, Bruyette & Woods increased their price target on shares of PayPal from $85.00 to $90.00 and gave the company an “outperform” rating in a report on Wednesday, October 29th. Sanford C. Bernstein reissued a “market perform” rating on shares of PayPal in a research report on Wednesday. JPMorgan Chase & Co. restated a “neutral” rating and issued a $70.00 price objective (down from $85.00) on shares of PayPal in a report on Thursday, December 4th. Finally, TD Cowen lifted their target price on PayPal from $75.00 to $80.00 and gave the stock a “hold” rating in a report on Wednesday, October 29th. Thirteen research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, PayPal currently has a consensus rating of “Hold” and an average target price of $78.97.

PayPal Trading Up 0.6%

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The stock’s 50-day moving average is $64.57 and its two-hundred day moving average is $68.80. The company has a market cap of $55.96 billion, a P/E ratio of 11.99, a P/E/G ratio of 0.81 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last announced its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. The business had revenue of $8.42 billion during the quarter, compared to analyst estimates of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.20 EPS. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Wednesday, November 19th were given a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Wednesday, November 19th. PayPal’s dividend payout ratio (DPR) is presently 11.22%.

Insider Buying and Selling at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of the stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the transaction, the insider owned 30,983 shares in the company, valued at $1,854,022.72. This represents a 11.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Diego Scotti sold 3,838 shares of the firm’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $68.97, for a total transaction of $264,706.86. Following the completion of the transaction, the executive vice president directly owned 16,989 shares in the company, valued at approximately $1,171,731.33. The trade was a 18.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 36,156 shares of company stock worth $2,432,524 over the last 90 days. 0.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On PayPal

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Capital Research Global Investors increased its position in PayPal by 2.3% in the third quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock worth $1,874,637,000 after buying an additional 636,441 shares in the last quarter. Norges Bank bought a new position in shares of PayPal during the 2nd quarter valued at approximately $921,570,000. Artisan Partners Limited Partnership increased its holdings in PayPal by 1.6% in the 2nd quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider’s stock worth $891,248,000 after acquiring an additional 184,014 shares in the last quarter. Invesco Ltd. raised its stake in PayPal by 10.9% during the 3rd quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider’s stock worth $746,508,000 after acquiring an additional 1,093,365 shares during the period. Finally, Amundi lifted its holdings in PayPal by 1.6% during the third quarter. Amundi now owns 8,493,311 shares of the credit services provider’s stock valued at $605,488,000 after purchasing an additional 132,837 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

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.