PayPal (NASDAQ:PYPL) Stock Price Down 1% Following Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price dropped 1% on Friday after Susquehanna lowered their price target on the stock from $94.00 to $90.00. Susquehanna currently has a positive rating on the stock. PayPal traded as low as $57.28 and last traded at $57.66. Approximately 14,988,067 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 14,811,846 shares. The stock had previously closed at $58.27.

A number of other analysts have also recently commented on PYPL. UBS Group cut their target price on PayPal from $80.00 to $65.00 in a research report on Wednesday, December 24th. President Capital dropped their price target on PayPal from $91.00 to $80.00 and set a “buy” rating on the stock in a research note on Tuesday, November 25th. Evercore ISI cut their price target on PayPal from $75.00 to $65.00 and set an “in-line” rating on the stock in a research report on Monday, December 8th. KeyCorp reiterated a “hold” rating on shares of PayPal in a research note on Wednesday, October 22nd. Finally, Baird R W lowered shares of PayPal from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Twelve analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $77.26.

Insider Buying and Selling

In other PayPal news, EVP Diego Scotti sold 3,838 shares of the company’s stock in a transaction on Thursday, October 30th. The shares were sold at an average price of $68.97, for a total transaction of $264,706.86. Following the completion of the transaction, the executive vice president owned 16,989 shares in the company, valued at approximately $1,171,731.33. This represents a 18.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Suzan Kereere sold 12,500 shares of the business’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $68.87, for a total transaction of $860,875.00. Following the transaction, the insider owned 30,983 shares in the company, valued at approximately $2,133,799.21. This trade represents a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 36,156 shares of company stock valued at $2,432,524. Company insiders own 0.08% of the company’s stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Partnership with Microsoft to power Copilot Checkout — integration lets shoppers complete purchases inside Microsoft Copilot, expanding PayPal’s payment footprint and potential transaction volume. PayPal Teams With Microsoft to Power Checkout in Copilot
• Positive Sentiment: Coverage highlighting PayPal as a value buy — recent pieces (Forbes, MoneyShow) argue PYPL’s valuation and margins make it an attractive long‑term purchase for value investors. Should You Consider Buying PayPal Stock?
• Positive Sentiment: New Transaction Graph Analytics program — product aimed at merchant analytics/insights that could boost monetization and seller retention if adoption scales. How PayPal’s New Transaction Graph Analytics Program Will Impact PayPal Holdings (PYPL) Investors
• Neutral Sentiment: Options activity shows elevated interest — options flow and positioning can signal short‑term speculators hedging or positioning around catalysts, but direction is ambiguous. Behind the Scenes of PayPal Holdings’s Latest Options Trends
• Neutral Sentiment: Susquehanna trims price target (from $94 to $90) but keeps a “positive” rating — reduced upside estimate but analyst stance remains constructive, a mixed signal for sentiment. PayPal price target lowered by at Susquehanna
• Neutral Sentiment: Market summaries note PYPL has dipped more than the broader market recently — useful context but not a direct catalyst. Why Paypal (PYPL) Dipped More Than Broader Market Today
• Negative Sentiment: Goldman Sachs lowered its price target to $65 — a meaningful cut that reduces analyst‑driven upside and likely pressured sentiment. The Goldman Sachs Group Lowers PayPal (NASDAQ:PYPL) Price Target to $65.00
• Negative Sentiment: Recent analyst downgrade drove a sell reaction — coverage noting the downgrade has coincided with downward pressure on the stock. PayPal (NASDAQ:PYPL) Shares Down 2.2% After Analyst Downgrade
• Negative Sentiment: Public criticism from commentators (Jim Cramer: “late to new technologies”) feeds a narrative that PayPal risks losing share to newer fintech entrants and could weigh on sentiment. Jim Cramer on Paypal: “The Company’s Been Late to New Technologies”

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Hilltop National Bank purchased a new stake in PayPal during the second quarter worth $27,000. MUFG Securities EMEA plc raised its stake in shares of PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after buying an additional 87,524 shares during the last quarter. Cloud Capital Management LLC purchased a new stake in shares of PayPal in the 3rd quarter worth about $30,000. Kelleher Financial Advisors acquired a new stake in PayPal in the 3rd quarter valued at about $30,000. Finally, True Wealth Design LLC grew its stake in PayPal by 285.3% in the 3rd quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock valued at $35,000 after acquiring an additional 388 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a market capitalization of $53.95 billion, a PE ratio of 11.56, a P/E/G ratio of 0.73 and a beta of 1.42. The company’s fifty day simple moving average is $61.80 and its two-hundred day simple moving average is $67.55.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.14. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company had revenue of $8.42 billion for the quarter, compared to the consensus estimate of $8.21 billion. During the same quarter in the prior year, the firm earned $1.20 earnings per share. The company’s revenue for the quarter was up 7.3% compared to the same quarter last year. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, sell-side analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Wednesday, November 19th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Wednesday, November 19th. PayPal’s payout ratio is 11.22%.

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.