PayPal (NASDAQ:PYPL) Shares Down 4.7% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL) was down 4.7% during mid-day trading on Tuesday . The company traded as low as $66.41 and last traded at $66.46. Approximately 6,631,021 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 11,852,394 shares. The stock had previously closed at $69.75.

Analyst Ratings Changes

A number of equities analysts have issued reports on PYPL shares. Robert W. Baird cut their target price on shares of PayPal from $100.00 to $95.00 and set an “outperform” rating on the stock in a report on Wednesday, February 5th. BTIG Research reissued a “neutral” rating on shares of PayPal in a report on Tuesday, February 4th. Morgan Stanley raised their target price on shares of PayPal from $79.00 to $80.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 26th. Citigroup restated an “outperform” rating on shares of PayPal in a research note on Wednesday, February 5th. Finally, Susquehanna raised their price target on shares of PayPal from $94.00 to $101.00 and gave the company a “positive” rating in a research note on Monday, January 6th. Fourteen equities research analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, PayPal has a consensus rating of “Moderate Buy” and a consensus target price of $90.03.

PayPal Stock Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.26 and a current ratio of 1.26. The firm’s 50-day moving average price is $83.27 and its two-hundred day moving average price is $81.17. The firm has a market capitalization of $66.75 billion, a price-to-earnings ratio of 16.83, a price-to-earnings-growth ratio of 1.27 and a beta of 1.44.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results on Tuesday, February 4th. The credit services provider reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.11 by $0.08. The firm had revenue of $8.37 billion for the quarter, compared to analyst estimates of $8.27 billion. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.48 earnings per share. Sell-side analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insider Buying and Selling at PayPal

In other PayPal news, Director Gail J. Mcgovern sold 2,446 shares of the business’s stock in a transaction dated Thursday, February 27th. The shares were sold at an average price of $72.15, for a total value of $176,478.90. Following the transaction, the director now directly owns 29,734 shares in the company, valued at $2,145,308.10. The trade was a 7.60 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On PayPal

Large investors have recently modified their holdings of the stock. Relyea Zuckerberg Hanson LLC lifted its position in shares of PayPal by 113.8% during the fourth quarter. Relyea Zuckerberg Hanson LLC now owns 7,470 shares of the credit services provider’s stock worth $638,000 after purchasing an additional 3,976 shares in the last quarter. World Investment Advisors LLC acquired a new position in shares of PayPal during the third quarter worth approximately $387,435,000. United Advisor Group LLC acquired a new position in shares of PayPal during the third quarter worth approximately $810,000. Equity Investment Corp lifted its position in shares of PayPal by 3.5% during the third quarter. Equity Investment Corp now owns 1,998,298 shares of the credit services provider’s stock worth $155,927,000 after purchasing an additional 67,497 shares in the last quarter. Finally, Weil Company Inc. lifted its position in shares of PayPal by 68.9% during the third quarter. Weil Company Inc. now owns 41,689 shares of the credit services provider’s stock worth $3,253,000 after purchasing an additional 17,003 shares in the last quarter. 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.