PayPal (NASDAQ:PYPL) Stock Price Up 2.3% – Still a Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL) was up 2.3% during mid-day trading on Thursday . The stock traded as high as $60.76 and last traded at $60.59. 9,513,943 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 18,933,453 shares. The stock had previously closed at $59.20.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover discussions provided the main catalyst. PayPal is reportedly in early negotiations to sell itself to a group involving Stripe and private-equity firm Advent International. The parties are said to be considering a higher valuation than an earlier offer, although discussions remain preliminary and no deal is assured. PayPal Stock Rises on Report of Stripe, Advent Buyout Talks
• Positive Sentiment: A $1.5 billion cost-savings plan could support earnings. PayPal intends to use artificial intelligence, operational changes and a simpler organizational structure to reduce expenses, potentially improving profitability while freeing resources for future growth. PayPal Cost Savings: Will $1.5B Plan Reshape Profitability?
• Positive Sentiment: Venmo remains a potential growth and monetization engine. Venmo is generating mid-teens total payment volume growth, but the investment case increasingly depends on PayPal converting expanding user activity and product adoption into revenue. PayPal’s Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Neutral Sentiment: Recent profit improvement may already be reflected in company disclosures. Commentary highlighted a shift toward businesses that are supporting PayPal’s recovery, but suggested the underlying drivers were previously identified in management reports rather than representing a wholly new development. PayPal Stock Surged On a Profit Shift Management Had Already Spelled Out
• Negative Sentiment: Longer-term investor concerns remain. Despite recurring payment-volume growth, PayPal’s shares remain far below their record level, reflecting doubts about revenue conversion, competitive pressure and the company’s ability to sustain growth. PayPal Grows Its Volume Every Year. Here’s Why the Stock Doesn’t Always Follow

Analyst Ratings Changes

A number of analysts have recently commented on the company. Barclays lifted their target price on PayPal from $55.00 to $57.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 29th. Cantor Fitzgerald lifted their price target on PayPal from $54.00 to $60.00 and gave the stock a “neutral” rating in a research report on Monday, August 3rd. Morgan Stanley set a $45.00 price objective on PayPal in a report on Wednesday, July 29th. Bank of America lowered their target price on shares of PayPal from $55.00 to $53.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Finally, Clear Str raised shares of PayPal to a “hold” rating in a report on Thursday, July 16th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, PayPal currently has an average rating of “Hold” and an average price target of $55.72.

PayPal Price Performance

The stock has a market cap of $52.76 billion, a price-to-earnings ratio of 11.66, a PEG ratio of 1.48 and a beta of 1.30. The company has a 50-day moving average of $50.13 and a 200-day moving average of $47.28. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, beating the consensus estimate of $1.28 by $0.10. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The firm had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. During the same period in the prior year, the business earned $1.40 EPS. The firm’s revenue was up 4.8% compared to the same quarter last year. As a group, equities research analysts predict that PayPal Holdings, Inc. will post 5.37 earnings per share for the current year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is 10.59%.

Insiders Place Their Bets

In related news, insider Suzan Kereere sold 3,379 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were 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 in the company, valued at $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the company’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $42,529.20. Following the transaction, the insider owned 41,567 shares in the company, valued at $2,415,042.70. The trade was a 1.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 10,612 shares of company stock worth $484,534. Corporate insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On PayPal

Several institutional investors have recently modified their holdings of the company. Bard Associates Inc. acquired a new stake in PayPal in the fourth quarter valued at $25,000. Allied Private Wealth LLC purchased a new stake in shares of PayPal in the 2nd quarter worth about $25,000. Robinswood Financial LLC acquired a new stake in PayPal in the 1st quarter valued at about $26,000. Caitong International Asset Management Co. Ltd increased its holdings in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after acquiring an additional 457 shares in the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in PayPal during the 2nd quarter valued at about $27,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

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.