Canaccord Genuity Group restated their hold rating on shares of PayPal (NASDAQ:PYPL – Free Report) in a research report released on Wednesday morning,Benzinga reports. The brokerage currently has a $55.00 target price on the credit services provider’s stock.
A number of other research analysts also recently commented on the company. BMO Capital Markets started coverage on PayPal in a research note on Tuesday, April 21st. They issued a “market perform” rating and a $52.00 target price on the stock. Bank of America cut their price target on PayPal from $55.00 to $53.00 and set a “neutral” rating for the company in a research note on Wednesday, May 6th. Morgan Stanley reiterated an “underweight” rating on shares of PayPal in a report on Tuesday. Weiss Ratings restated a “hold (c-)” rating on shares of PayPal in a report on Friday, May 8th. Finally, Needham & Company LLC restated a “hold” rating on shares of PayPal in a report on Tuesday, May 5th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $55.50.
Check Out Our Latest Stock Analysis on PayPal
PayPal Trading Down 0.8%
PayPal (NASDAQ:PYPL – Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. The business had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm’s revenue was up 4.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.40 earnings per share. As a group, equities research analysts forecast that PayPal will post 5.35 earnings per share for the current fiscal year.
PayPal Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. PayPal’s payout ratio is currently 10.59%.
Insider Transactions at PayPal
In related news, insider Frank Keller sold 732 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $42,529.20. Following the transaction, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $2,415,042.70. This trade represents a 1.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 10,612 shares of company stock worth $484,534. 0.63% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On PayPal
Institutional investors have recently modified their holdings of the company. Maia Wealth LLC raised its stake in shares of PayPal by 2.5% during the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock valued at $424,000 after purchasing an additional 155 shares in the last quarter. GeoWealth Management LLC grew its position in PayPal by 6.2% in the 3rd quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider’s stock valued at $216,000 after buying an additional 188 shares in the last quarter. Formidable Asset Management LLC grew its position in PayPal by 0.8% in the 1st quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider’s stock valued at $1,173,000 after buying an additional 205 shares in the last quarter. KPP Advisory Services LLC increased its stake in PayPal by 3.3% during the 1st quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider’s stock valued at $300,000 after buying an additional 214 shares during the period. Finally, Leo Wealth LLC raised its position in shares of PayPal by 6.8% during the 4th quarter. Leo Wealth LLC now owns 3,564 shares of the credit services provider’s stock worth $208,000 after buying an additional 227 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.
Trending Headlines about PayPal
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
- Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
- Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
- Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
- Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
- Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
- Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling
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.
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