PayPal (NASDAQ:PYPL) Shares Down 4.5% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL) was down 4.5% on Friday . The company traded as low as $83.91 and last traded at $83.95. Approximately 3,070,772 shares traded hands during mid-day trading, a decline of 49% from the average daily volume of 6,024,261 shares. The stock had previously closed at $87.94.

Analyst Upgrades and Downgrades

Several analysts have weighed in on PYPL shares. Robert W. Baird boosted their price objective on PayPal from $80.00 to $91.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. Macquarie increased their target price on shares of PayPal from $95.00 to $115.00 and gave the stock an “outperform” rating in a report on Tuesday, December 17th. Monness Crespi & Hardt raised their target price on shares of PayPal from $95.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, October 28th. Barclays boosted their price objective on PayPal from $92.00 to $110.00 and gave the stock an “overweight” rating in a report on Tuesday, December 17th. Finally, Wolfe Research raised PayPal from a “peer perform” rating to an “outperform” rating and set a $107.00 target price on the stock in a report on Friday, December 13th. Fourteen equities research analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, PayPal currently has an average rating of “Moderate Buy” and a consensus price target of $88.65.

PayPal Price Performance

The stock has a market capitalization of $83.57 billion, a P/E ratio of 19.89, a price-to-earnings-growth ratio of 1.66 and a beta of 1.44. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.49. The business’s 50 day simple moving average is $86.64 and its two-hundred day simple moving average is $75.80.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings results on Tuesday, October 29th. The credit services provider reported $1.20 earnings per share for the quarter, beating the consensus estimate of $1.07 by $0.13. The company had revenue of $7.85 billion during the quarter, compared to analyst estimates of $7.88 billion. PayPal had a net margin of 14.08% and a return on equity of 23.44%. The firm’s revenue for the quarter was up 6.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.97 earnings per share. As a group, sell-side analysts forecast that PayPal Holdings, Inc. will post 4.57 earnings per share for the current fiscal year.

Institutional Investors Weigh In On PayPal

Several hedge funds have recently bought and sold shares of PYPL. Graypoint LLC boosted its stake in shares of PayPal by 10.6% during the fourth quarter. Graypoint LLC now owns 5,380 shares of the credit services provider’s stock valued at $459,000 after purchasing an additional 515 shares during the period. Sugarloaf Wealth Management LLC raised its holdings in PayPal by 344.3% in the fourth quarter. Sugarloaf Wealth Management LLC now owns 351 shares of the credit services provider’s stock worth $30,000 after purchasing an additional 272 shares in the last quarter. ORG Wealth Partners LLC grew its holdings in PayPal by 51.0% in the fourth quarter. ORG Wealth Partners LLC now owns 3,427 shares of the credit services provider’s stock worth $292,000 after purchasing an additional 1,157 shares during the period. Hilltop National Bank raised its stake in PayPal by 129.1% during the fourth quarter. Hilltop National Bank now owns 1,535 shares of the credit services provider’s stock valued at $131,000 after buying an additional 865 shares during the last quarter. Finally, A. D. Beadell Investment Counsel Inc. boosted its stake in PayPal by 4.7% in the 4th quarter. A. D. Beadell Investment Counsel Inc. now owns 5,259 shares of the credit services provider’s stock worth $448,000 after purchasing an additional 235 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors.

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.