PayPal (NASDAQ:PYPL) Shares Down 1.9% Following Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price was down 1.9% during mid-day trading on Tuesday after HSBC lowered their price target on the stock from $93.00 to $72.00. HSBC currently has a buy rating on the stock. PayPal traded as low as $55.21 and last traded at $55.51. Approximately 14,186,462 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 14,988,712 shares. The stock had previously closed at $56.60.

Several other research analysts have also issued reports on PYPL. Jefferies Financial Group reissued a “hold” rating on shares of PayPal in a research report on Wednesday, January 7th. Monness Crespi & Hardt downgraded shares of PayPal from a “buy” rating to a “neutral” rating in a research note on Monday, January 5th. Wall Street Zen cut PayPal from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $70.00 price objective (down previously from $85.00) on shares of PayPal in a research report on Thursday, December 4th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of PayPal in a research note on Tuesday, October 28th. Twelve analysts have rated the stock with a Buy rating, twenty-five have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, PayPal has a consensus rating of “Hold” and a consensus target price of $74.87.

Insider Buying and Selling at PayPal

In other PayPal news, CAO Chris Natali sold 1,374 shares of the business’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $69.13, for a total transaction of $94,984.62. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the completion of the transaction, the insider owned 30,983 shares in the company, valued at $1,854,022.72. The trade was a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 36,156 shares of company stock worth $2,432,524 over the last ninety days. 0.08% of the stock is owned by insiders.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal agreed to acquire e‑commerce platform Cymbio to expand its agentic commerce capabilities — a strategic move that could boost merchant services and revenue diversification if integration succeeds. PayPal to Acquire E-Commerce Platform Cymbio to Expand Agentic Commerce Push
• Positive Sentiment: Retail and outlet commentary is turning bullish — a 24/7 Wall St. piece predicts PayPal will beat on Feb. 3 and resume a move toward $90, reflecting improving sentiment that can amplify rallies if earnings and guidance impress. Prediction: PayPal Beats Earnings On Feb 3rd and Will Hit $90 Soon
• Neutral Sentiment: JPMorgan expects a revenue beat but in‑line EPS for Q4 and left its rating unchanged — good top‑line signals could support the stock, but muted EPS guidance would limit upside. PayPal Q4 Preview: Analyst Expects Revenue Beat, In-Line Earnings
• Neutral Sentiment: BTIG maintained a Hold, citing attractive valuation but slowing growth — this underscores the tug‑of‑war between cheaper multiples and near‑term execution risk. Balancing Attractive Valuation Against Slowing Growth: Rationale for Maintaining a Hold on PayPal
• Neutral Sentiment: KeyCorp commentary on PayPal’s Q1 outlook is circulating — analysts are focused on payments TPV, merchant acceptance, and guidance cadence ahead of the print. KeyCorp Comments on PayPal’s Q1 Earnings (NASDAQ:PYPL)
• Negative Sentiment: HSBC cut its price target to $72 from $93 while keeping a Buy — a sizable PT cut signals tempered medium‑term upside expectations and can pressure sentiment despite the maintained positive rating. HSBC Adjusts Price Target on PayPal to $72 From $93, Maintains Buy Rating Tickerreport: HSBC PT Cut
• Negative Sentiment: Zacks warns PayPal lacks the key setup for an earnings beat, flagging execution risk into the report — this raises the chance of downside if results or guidance disappoint. Paypal (PYPL) Earnings Expected to Grow: Should You Buy?

Institutional Investors Weigh In On PayPal

A number of institutional investors have recently modified their holdings of PYPL. Norges Bank purchased a new position in shares of PayPal during the second quarter worth about $921,570,000. Dimensional Fund Advisors LP lifted its holdings in shares of PayPal by 35.9% during the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock worth $548,520,000 after purchasing an additional 2,160,227 shares during the period. Lazard Asset Management LLC grew its position in PayPal by 1,066.0% in the 2nd quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock valued at $156,532,000 after buying an additional 1,925,583 shares during the last quarter. Two Sigma Investments LP acquired a new stake in shares of PayPal in the 3rd quarter worth $97,794,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of PayPal by 45.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,569,023 shares of the credit services provider’s stock valued at $265,250,000 after acquiring an additional 1,107,202 shares in the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Trading Down 1.9%

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 firm has a market capitalization of $51.94 billion, a price-to-earnings ratio of 11.12, a price-to-earnings-growth ratio of 0.71 and a beta of 1.42. The business’s 50 day moving average price is $59.51 and its 200-day moving average price is $65.93.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. The company had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period last year, the company posted $1.20 earnings per share. Equities analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

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.