PayPal (NASDAQ:PYPL) Trading Down 2% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL) shares traded down 2% during trading on Tuesday . The stock traded as low as $72.70 and last traded at $73.74. 7,718,141 shares were traded during trading, a decline of 32% from the average session volume of 11,396,761 shares. The stock had previously closed at $75.25.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on PYPL. BMO Capital Markets increased their target price on PayPal from $73.00 to $82.00 and gave the company a “market perform” rating in a research report on Wednesday, October 30th. Piper Sandler increased their price target on PayPal from $88.00 to $93.00 and gave the stock a “neutral” rating in a report on Friday, January 24th. Wolfe Research raised shares of PayPal from a “peer perform” rating to an “outperform” rating and set a $107.00 price objective for the company in a research report on Friday, December 13th. Macquarie increased their price target on PayPal from $115.00 to $117.00 and gave the stock an “outperform” rating in a research report on Monday, February 10th. Finally, Morgan Stanley reissued an “equal weight” rating on shares of PayPal in a report on Wednesday, February 5th. Fourteen equities research analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, PayPal presently has a consensus rating of “Moderate Buy” and an average target price of $90.52.

PayPal Price Performance

The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.48. The company has a fifty day moving average price of $84.86 and a two-hundred day moving average price of $80.96. The firm has a market cap of $72.56 billion, a P/E ratio of 18.34, a PEG ratio of 1.27 and a beta of 1.44.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, February 4th. The credit services provider reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.11 by $0.08. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company had revenue of $8.37 billion during the quarter, compared to the consensus estimate of $8.27 billion. During the same period in the prior year, the business posted $1.48 EPS. The company’s quarterly revenue was up 4.2% on a year-over-year basis. Equities analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Institutional Trading of PayPal

Several large investors have recently made changes to their positions in PYPL. Geode Capital Management LLC grew its holdings in shares of PayPal by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 21,736,394 shares of the credit services provider’s stock worth $1,849,884,000 after purchasing an additional 271,836 shares during the last quarter. FMR LLC raised its position in shares of PayPal by 12.9% during the fourth quarter. FMR LLC now owns 18,923,662 shares of the credit services provider’s stock worth $1,615,134,000 after acquiring an additional 2,161,582 shares during the last quarter. Capital Research Global Investors boosted its holdings in PayPal by 108.2% in the fourth quarter. Capital Research Global Investors now owns 17,924,106 shares of the credit services provider’s stock valued at $1,529,823,000 after acquiring an additional 9,313,783 shares during the last quarter. Norges Bank bought a new position in PayPal during the 4th quarter worth approximately $1,086,508,000. Finally, Mizuho Securities USA LLC lifted its position in shares of 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. Institutional investors and hedge funds own 68.32% of the company’s stock.

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.