PayPal (NASDAQ:PYPL) Stock Price Down 1.3% – Here’s What Happened

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price dropped 1.3% during mid-day trading on Tuesday . The stock traded as low as $56.28 and last traded at $56.56. Approximately 15,804,716 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 15,600,561 shares. The stock had previously closed at $57.29.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Expanded partnership with Deutsche Bank to scale merchant settlement, payouts and withdrawals across the U.S., Europe and APAC — strengthens PayPal’s payments infrastructure and could help win or retain large merchants. PayPal Teams With Deutsche Bank to Scale Payment Solutions
• Positive Sentiment: Product expansion into agentic commerce with Copilot Checkout (integrating AI-driven shopping, branded checkout and payments inside Microsoft Copilot) could boost branded checkout adoption and ARPU if merchant take-up accelerates. PayPal’s Agentic Commerce Expansion
• Positive Sentiment: Institutional buying remains visible in recent filings (large increases by UBS AM, Goldman Sachs, Dimensional), signaling some long-term investor conviction amid the pullback. PayPal Opinions on Recent Downgrade and Market Challenges
• Neutral Sentiment: Options and short-interest signals are mixed — some elevated options activity but short-interest reporting is noisy; watch flow for directional clues into earnings. Decoding PayPal Holdings’s Options Activity
• Neutral Sentiment: Upcoming fiscal Q4 results (early February) are a near-term catalyst — consensus expects modest EPS growth; guidance and checkout trends will matter most. Here’s What to Expect From PayPal Holdings’ Next Earnings Report
• Negative Sentiment: Major downgrade to Neutral and a lower price target prompted social-media debate — concerns focus on soft branded-checkout volumes, competitive pressure, and mixed guidance prospects; analysts remain divided. PayPal Opinions on Recent Downgrade and Market Challenges
• Negative Sentiment: Persistent negative analyst commentary and media stories saying the stock “missed” the 2025 rally and could underperform in 2026 are reinforcing bearish sentiment and pressuring the share price. How PayPal’s stock missed the entire 2025 bull run
• Negative Sentiment: Commentary and analysis calling the recent price decline a “crash” with more downside risk is amplifying selling pressure; coupled with notable insider selling activity, this weakens near-term sentiment. PayPal stock price crash has more room to go

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Rothschild & Co Redburn increased their target price on PayPal from $66.00 to $70.00 and gave the stock a “neutral” rating in a report on Tuesday, September 16th. Evercore ISI lowered their price objective on shares of PayPal from $75.00 to $65.00 and set an “in-line” rating on the stock in a report on Monday, December 8th. Dbs Bank dropped their price objective on shares of PayPal from $75.00 to $70.00 and set a “hold” rating on the stock in a research note on Thursday, November 13th. The Goldman Sachs Group reduced their price objective on shares of PayPal from $72.00 to $65.00 and set a “sell” rating for the company in a report on Tuesday, January 6th. Finally, Royal Bank Of Canada upped their target price on shares of PayPal from $88.00 to $91.00 and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Twelve research analysts have rated the stock with a Buy rating, twenty-five have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, PayPal has an average rating of “Hold” and a consensus target price of $76.81.

PayPal Trading Down 1.3%

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The company has a market capitalization of $52.92 billion, a P/E ratio of 11.33, a price-to-earnings-growth ratio of 0.72 and a beta of 1.42. The firm has a fifty day moving average price of $61.34 and a 200-day moving average price of $67.25.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, October 28th. The credit services provider reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.14. PayPal had a return on equity of 25.64% and a net margin of 14.96%.The business had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.21 billion. During the same period last year, the company posted $1.20 earnings per share. PayPal’s quarterly revenue 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. On average, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

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

Insider Activity at PayPal

In other PayPal news, EVP Aaron Webster sold 9,282 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total value of $615,303.78. Following the transaction, the executive vice president directly owned 35,699 shares in the company, valued at $2,366,486.71. The trade was a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Diego Scotti sold 3,838 shares of the stock in a transaction that occurred 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 transaction, the executive vice president directly owned 16,989 shares of the company’s stock, valued at $1,171,731.33. This represents a 18.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 36,156 shares of company stock worth $2,432,524. Insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Kathmere Capital Management LLC increased its holdings in PayPal by 27.9% in the 4th quarter. Kathmere Capital Management LLC now owns 6,449 shares of the credit services provider’s stock worth $377,000 after acquiring an additional 1,406 shares during the last quarter. Well Done LLC purchased a new stake in PayPal during the fourth quarter valued at about $218,000. Czech National Bank boosted its position in PayPal by 1.7% during the fourth quarter. Czech National Bank now owns 246,697 shares of the credit services provider’s stock worth $14,402,000 after purchasing an additional 4,050 shares during the period. Fiduciary Financial Group LLC purchased a new position in shares of PayPal in the fourth quarter worth about $363,000. Finally, Uhlmann Price Securities LLC raised its position in shares of PayPal by 681.4% in the fourth quarter. Uhlmann Price Securities LLC now owns 24,575 shares of the credit services provider’s stock valued at $1,435,000 after purchasing an additional 21,430 shares during the period. Hedge funds and other institutional investors own 68.32% of the company’s stock.

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.