PayPal (NASDAQ:PYPL) Shares Up 1.5% – What’s Next?

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) rose 1.5% during trading on Friday . The company traded as high as $46.42 and last traded at $46.21. Approximately 23,562,207 shares were traded during trading, a decline of 14% from the average daily volume of 27,532,992 shares. The stock had previously closed at $45.53.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover chatter: reports that Stripe has explored buying all or parts of PayPal rekindled M&A speculation and sparked a trading surge as investors price potential strategic value or a takeover premium. Read More.
• Positive Sentiment: Product/crypto expansion: PayPal, MoonPay and M0 announced PYUSDx, a platform to let developers issue PYUSD‑backed stablecoins — a potential growth and ecosystem play that could boost payments volume and crypto revenue opportunities. Read More.
• Neutral Sentiment: Conflicting deal signals: subsequent reporting and company commentary have cast doubt on active sale talks — some outlets say PayPal isn’t in talks, which tempers the M&A upside and increases volatility as investors re‑price expectations. Read More.
• Negative Sentiment: Wave of class‑action notices: multiple law firms have filed or issued reminders about securities fraud class actions tied to FY25 results and guidance (lead‑plaintiff deadlines in April), increasing legal overhang and potential future costs/distraction. Read More.
• Negative Sentiment: Analyst and fundamental pressure: sell‑side skepticism and critical research highlight weak Braintree economics, rising credit losses, slowing TPV and lower FY26 guidance — factors that undercut re‑rating prospects. Read More.
• Negative Sentiment: Value‑trap concerns: bearish commentaries argue recent EPS gains were buyback‑driven, with weak organic growth and risky balance‑sheet trends — a narrative that can keep multiples depressed absent clear execution. Read More.
• Negative Sentiment: Market mechanics and positioning: elevated short interest and volatility (including an LULD halt on takeover rumors) amplify downside risk if positive deal news fades or legal/earnings concerns persist. Read More.

Analyst Upgrades and Downgrades

PYPL has been the subject of a number of recent research reports. TD Cowen reissued a “hold” rating on shares of PayPal in a research report on Tuesday, February 3rd. Zacks Research lowered shares of PayPal from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 11th. BTIG Research restated a “neutral” rating on shares of PayPal in a research note on Tuesday, February 3rd. Canaccord Genuity Group reiterated a “hold” rating and set a $42.00 price objective (down from $100.00) on shares of PayPal in a research note on Wednesday, February 4th. Finally, UBS Group reissued a “neutral” rating and issued a $44.00 target price on shares of PayPal in a research note on Wednesday, February 4th. Nine equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, PayPal has a consensus rating of “Hold” and a consensus price target of $61.03.

PayPal Price Performance

The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The firm’s fifty day moving average price is $51.85 and its two-hundred day moving average price is $61.57. The stock has a market capitalization of $42.54 billion, a PE ratio of 8.54, a PEG ratio of 1.24 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last announced 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 company had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal’s quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.19 earnings per share. On average, equities analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, March 4th. PayPal’s dividend payout ratio (DPR) is presently 10.35%.

Insider Buying and Selling at PayPal

In related news, insider Suzan Kereere sold 37,613 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total transaction of $1,560,563.37. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,285,484.67. The trade was a 54.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Frank Keller sold 3,478 shares of the stock in a transaction that occurred on 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 owned 51,567 shares in the company, valued at $2,072,993.40. The trade was a 6.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 42,304 shares of company stock worth $1,749,493 in the last three months. 0.08% of the stock is currently 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. Norges Bank purchased a new position in PayPal during the fourth quarter valued at approximately $949,758,000. Vanguard Group Inc. lifted its stake in shares of PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after buying an additional 5,534,462 shares in the last quarter. AQR Capital Management LLC boosted its holdings in PayPal by 143.4% in the 4th quarter. AQR Capital Management LLC now owns 5,089,586 shares of the credit services provider’s stock worth $297,130,000 after buying an additional 2,998,286 shares during the period. Dimensional Fund Advisors LP increased its stake in PayPal by 35.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock worth $548,520,000 after buying an additional 2,160,227 shares in the last quarter. Finally, Lazard Asset Management LLC increased its stake in PayPal by 1,066.0% in the 2nd quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock worth $156,532,000 after buying an additional 1,925,583 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

About PayPal

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.