PayPal (NASDAQ:PYPL) Trading Down 1.3% – Should You Sell?

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) dropped 1.3% during trading on Tuesday . The stock traded as low as $68.29 and last traded at $68.74. Approximately 2,133,598 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 10,944,845 shares. The stock had previously closed at $69.65.

Wall Street Analyst Weigh In

PYPL has been the topic of several recent analyst reports. Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a research note on Wednesday, February 26th. Piper Sandler reduced their price target on shares of PayPal from $85.00 to $76.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 26th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of PayPal in a research note on Tuesday, February 4th. Morgan Stanley raised their target price on shares of PayPal from $79.00 to $80.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 26th. Finally, Barclays raised their target price on shares of PayPal from $92.00 to $110.00 and gave the company an “overweight” rating in a research report on Tuesday, December 17th. Fourteen investment analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, PayPal has a consensus rating of “Moderate Buy” and a consensus price target 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 simple moving average is $78.82 and its 200 day simple moving average is $80.89. The firm has a market capitalization of $69.25 billion, a price-to-earnings ratio of 17.46, a PEG ratio of 1.27 and a beta of 1.52.

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

Insider Activity

In other news, Director Gail J. Mcgovern sold 2,446 shares of PayPal stock in a transaction that occurred on Thursday, February 27th. The shares were sold at an average price of $72.15, for a total transaction of $176,478.90. Following the completion of the transaction, the director now directly owns 29,734 shares of the company’s stock, valued at $2,145,308.10. The trade was a 7.60 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On PayPal

Several institutional investors have recently made changes to their positions in PYPL. Geode Capital Management LLC increased its holdings in PayPal by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 21,736,394 shares of the credit services provider’s stock worth $1,849,884,000 after acquiring an additional 271,836 shares in the last quarter. FMR LLC increased its holdings in PayPal by 12.9% in the 4th quarter. FMR LLC now owns 18,923,662 shares of the credit services provider’s stock worth $1,615,134,000 after acquiring an additional 2,161,582 shares in the last quarter. Capital Research Global Investors increased its holdings in PayPal by 108.2% in the 4th quarter. Capital Research Global Investors now owns 17,924,106 shares of the credit services provider’s stock worth $1,529,823,000 after acquiring an additional 9,313,783 shares in the last quarter. Norges Bank purchased a new stake in PayPal in the 4th quarter worth $1,086,508,000. Finally, Northern Trust Corp increased its holdings in PayPal by 19.0% in the 4th quarter. Northern Trust Corp now owns 10,462,251 shares of the credit services provider’s stock worth $892,953,000 after acquiring an additional 1,669,908 shares in the last quarter. 68.32% of the stock is owned by hedge funds and other 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.