PayPal (NASDAQ:PYPL) Shares Down 9.2% – Here’s What Happened

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price was down 9.2% during mid-day trading on Tuesday . The company traded as low as $80.20 and last traded at $81.31. Approximately 21,844,809 shares traded hands during trading, an increase of 148% from the average daily volume of 8,822,078 shares. The stock had previously closed at $89.51.

Wall Street Analysts Forecast Growth

A number of research firms have commented on PYPL. Monness Crespi & Hardt boosted their price target on shares of PayPal from $95.00 to $110.00 and gave the company a “buy” rating in a research report on Monday, October 28th. Bank of America raised PayPal from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $86.00 to $103.00 in a report on Monday, December 9th. Phillip Securities reaffirmed an “accumulate” rating and set a $90.00 price target (up from $80.00) on shares of PayPal in a report on Friday, November 1st. Susquehanna boosted their price objective on PayPal from $94.00 to $101.00 and gave the stock a “positive” rating in a research note on Monday, January 6th. Finally, Wolfe Research upgraded PayPal from a “peer perform” rating to an “outperform” rating and set a $107.00 target price for the company in a research note on Friday, December 13th. Fourteen equities research analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, PayPal currently has a consensus rating of “Moderate Buy” and an average price target of $89.29.

PayPal Stock Down 0.8 %

The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.49. The firm has a market cap of $78.77 billion, a P/E ratio of 18.75, a price-to-earnings-growth ratio of 1.49 and a beta of 1.44. The firm’s 50 day moving average is $87.87 and its two-hundred day moving average is $79.39.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings results on Tuesday, February 4th. The credit services provider reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.08. The company had revenue of $8.37 billion during the quarter, compared to analyst estimates of $8.27 billion. PayPal had a net margin of 14.08% and a return on equity of 23.44%. The firm’s revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.48 EPS. As a group, research analysts anticipate that PayPal Holdings, Inc. will post 4.58 EPS for the current fiscal year.

Hedge Funds Weigh In On PayPal

Several institutional investors and hedge funds have recently modified their holdings of the business. Mizuho Securities USA LLC boosted its stake in PayPal by 12,919.4% in the 3rd quarter. Mizuho Securities USA LLC now owns 10,500,000 shares of the credit services provider’s stock worth $819,315,000 after purchasing an additional 10,419,351 shares during the period. FMR LLC lifted its holdings in shares of PayPal by 86.3% in the third quarter. FMR LLC now owns 16,762,080 shares of the credit services provider’s stock valued at $1,307,945,000 after purchasing an additional 7,767,072 shares in the last quarter. World Investment Advisors LLC acquired a new position in shares of PayPal during the third quarter worth about $387,435,000. Robeco Institutional Asset Management B.V. boosted its position in shares of PayPal by 174.1% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 4,233,341 shares of the credit services provider’s stock worth $361,316,000 after buying an additional 2,689,162 shares during the period. Finally, Raymond James Financial Inc. bought a new position in shares of PayPal during the fourth quarter worth about $135,537,000. 68.32% of the stock is currently owned by institutional investors and hedge funds.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.