PayPal (NASDAQ:PYPL) Downgraded to “Hold” Rating by Hsbc Global Res

PayPal (NASDAQ:PYPL) was downgraded by research analysts at Hsbc Global Res from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. Jefferies Financial Group reissued a “hold” rating on shares of PayPal in a report on Wednesday, January 7th. Royal Bank Of Canada decreased their price target on shares of PayPal from $91.00 to $59.00 and set an “outperform” rating on the stock in a research note on Wednesday. Citizens Jmp reissued a “market perform” rating on shares of PayPal in a report on Wednesday. Argus upped their price objective on PayPal from $81.00 to $87.00 and gave the stock a “buy” rating in a report on Wednesday, October 29th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of PayPal in a research report on Thursday, January 22nd. Ten research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, PayPal has a consensus rating of “Hold” and a consensus price target of $62.88.

PayPal Stock Down 1.6%

NASDAQ PYPL opened at $41.03 on Wednesday. The stock’s 50 day simple moving average is $58.06 and its 200 day simple moving average is $64.85. PayPal has a one year low of $39.96 and a one year high of $79.74. The firm has a market cap of $38.39 billion, a PE ratio of 7.58, a price-to-earnings-growth ratio of 0.52 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.34.

PayPal (NASDAQ:PYPL) 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). The business had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.PayPal’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.19 EPS. As a group, sell-side analysts forecast that PayPal will post 5.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total value of $249,054.08. Following the transaction, the insider directly owned 30,983 shares in the company, valued at $1,854,022.72. This trade represents a 11.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Aaron Webster sold 9,282 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total value of $615,303.78. Following the completion of the sale, the executive vice president owned 35,699 shares of the company’s stock, valued at $2,366,486.71. This represents a 20.64% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of PYPL. Vanguard Group Inc. raised its holdings in PayPal by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares during the period. Capital Research Global Investors increased its position in shares of PayPal by 2.3% in the 3rd quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock valued at $1,874,637,000 after buying an additional 636,441 shares in the last quarter. Norges Bank acquired a new stake in PayPal during the 2nd quarter worth $921,570,000. Artisan Partners Limited Partnership lifted its holdings in PayPal by 1.6% during the second 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. Finally, Invesco Ltd. grew its stake in PayPal by 10.9% in the third quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider’s stock valued at $746,508,000 after acquiring an additional 1,093,365 shares during the period. Institutional investors own 68.32% of the company’s stock.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Some investors/analysts flag a potential buying opportunity because PYPL is deeply oversold after the sell‑off; contrarian pieces and technical analyses argue support levels could attract buyers. Should You Buy The Dip In PayPal Stock?
• Positive Sentiment: A handful of firms kept constructive views (or less bearish stances) despite cuts to targets, arguing PayPal’s cash flow, buyback capacity and long‑term position in payments give upside if execution restores growth. Analyst notes and reiterations
• Neutral Sentiment: Board appointed Enrique Lores (former HP CEO and PayPal board chair) as incoming CEO (effective March 1) with Jamie Miller interim — a major leadership shift whose impact is uncertain: it may reassure some investors but also signals the board’s dissatisfaction with past execution. PayPal Appoints Enrique Lores as CEO
• Neutral Sentiment: PayPal announced a modest quarterly dividend (small yield) — positive for income‑seeking holders but unlikely to move the stock materially given current execution concerns.
• Negative Sentiment: Q4 results missed expectations (adjusted EPS $1.23 vs. ~$1.29 est.; revenue ~$8.68B vs. ~$8.8B) and management lowered near‑term profit guidance for 2026 — the primary catalyst for the price decline. Q4 results and call
• Negative Sentiment: Multiple analysts cut price targets or downgraded ratings after the quarter and CEO change, increasing sell pressure and reducing near‑term institutional support. Analyst downgrades and price‑target changes
• Negative Sentiment: Shareholder/legal risk rose: several law firms have opened securities‑fraud investigations probing the gap between prior outlooks and results, adding uncertainty and potential headline risk. Securities investigation notice
• Negative Sentiment: Public criticism from former PayPal leaders and commentary about slowing branded‑checkout and transactions‑per‑account growth have amplified concerns that PayPal’s core growth engine is stalling. Former exec criticism

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.