PayPal (NASDAQ:PYPL) Stock Price Down 1.3% – Should You Sell?

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) traded down 1.3% on Monday . The company traded as low as $44.64 and last traded at $45.63. 17,291,588 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 27,314,887 shares. The stock had previously closed at $46.21.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Speculation about potential buyers (reported takeover interest) is keeping upside hopes alive and can support the stock if a bid materializes. PayPal Buyout Rumors
• Positive Sentiment: KGI Securities reaffirmed a “neutral” rating but set a $55 price target (~20%+ upside from current levels), which could attract value‑oriented buyers if confidence stabilizes. Benzinga
• Neutral Sentiment: Consensus broker guidance remains tepid (“Hold”/average recommendation), reflecting mixed expectations rather than outright enthusiasm. PayPal Given Average Recommendation of “Hold” by Brokerages
• Neutral Sentiment: Analysis pieces note PayPal has underperformed broader benchmarks over the past year, reinforcing cautious positioning by some investors. Is PayPal Holdings Stock Underperforming the Dow?
• Negative Sentiment: Multiple law firms have filed or announced investigations and class actions covering purchases from Feb 25, 2025–Feb 2, 2026; widespread plaintiff solicitations and a looming April 20, 2026 lead‑plaintiff deadline increase legal overhang and potential liability. PayPal Holdings, Inc. Stockholders Have Rights – Robbins LLP
• Negative Sentiment: Corporate uncertainty: reporting indicates PayPal withdrew its 2027 targets and announced a CEO change — actions that often raise short‑term investor caution and amplify downside risk. PayPal Faces Lawsuits And CEO Change As Valuation Gap Widens
• Negative Sentiment: Technicals and liquidity: shares trade below the 50‑ and 200‑day moving averages with volume below average, which can exacerbate down moves as buyers stay on the sidelines.

Wall Street Analyst Weigh In

Several research firms have weighed in on PYPL. Mizuho set a $60.00 target price on shares of PayPal in a report on Wednesday, February 4th. HSBC lowered shares of PayPal from a “buy” rating to a “hold” rating and set a $47.00 price target on the stock. in a research report on Wednesday, February 4th. TD Cowen reaffirmed a “hold” rating on shares of PayPal in a research note on Tuesday, February 3rd. Susquehanna lowered their target price on PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a report on Wednesday, February 4th. Finally, Truist Financial cut their price target on PayPal from $58.00 to $39.00 and set a “sell” rating for the company in a report on Tuesday, February 10th. Eight research analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $59.55.

PayPal Price Performance

The company’s 50-day moving average is $51.58 and its 200-day moving average is $61.31. The firm has a market capitalization of $42.01 billion, a price-to-earnings ratio of 8.43, a PEG ratio of 1.21 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 1.29.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The company’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same period last year, the business posted $1.19 earnings per share. On average, research analysts expect that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

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

Insider Activity at PayPal

In other PayPal news, insider Suzan Kereere sold 37,613 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total value of $1,560,563.37. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,285,484.67. This trade represents a 54.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Chris Natali sold 1,213 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $40.49, for a total value of $49,114.37. Following the completion of the sale, the chief accounting officer owned 404 shares of the company’s stock, valued at approximately $16,357.96. This trade represents a 75.02% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 42,304 shares of company stock worth $1,749,493. Corporate insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in PYPL. National Pension Service lifted its stake in PayPal by 1.8% during the third quarter. National Pension Service now owns 2,855,897 shares of the credit services provider’s stock worth $191,516,000 after purchasing an additional 51,268 shares during the last quarter. Merit Financial Group LLC raised its holdings in shares of PayPal by 15.5% during the third quarter. Merit Financial Group LLC now owns 164,901 shares of the credit services provider’s stock worth $11,058,000 after purchasing an additional 22,139 shares during the period. Nordea Investment Management AB lifted its position in shares of PayPal by 7.9% in the 3rd quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider’s stock worth $291,338,000 after buying an additional 313,180 shares during the last quarter. Rakuten Investment Management Inc. acquired a new position in shares of PayPal in the 3rd quarter valued at about $13,210,000. Finally, Ariose Capital Management Ltd boosted its holdings in shares of PayPal by 347.0% in the 3rd quarter. Ariose Capital Management Ltd now owns 193,100 shares of the credit services provider’s stock valued at $12,949,000 after buying an additional 149,898 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

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.