PayPal (NASDAQ:PYPL) Shares Down 1% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price fell 1% on Tuesday . The company traded as low as $87.97 and last traded at $88.60. 1,472,041 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 5,361,537 shares. The stock had previously closed at $89.53.

Analysts Set New Price Targets

A number of research analysts have commented on PYPL shares. Susquehanna raised their target price on shares of PayPal from $94.00 to $101.00 and gave the company a “positive” rating in a research report on Monday. Piper Sandler reiterated a “neutral” rating and set a $88.00 price objective on shares of PayPal in a research note on Friday, November 22nd. Keefe, Bruyette & Woods lifted their price target on shares of PayPal from $92.00 to $104.00 and gave the stock an “outperform” rating in a report on Monday, December 9th. Wells Fargo & Company increased their price objective on PayPal from $70.00 to $75.00 and gave the company an “equal weight” rating in a report on Thursday, October 17th. Finally, Oppenheimer started coverage on PayPal in a research report on Tuesday, October 1st. They set a “market perform” rating on the stock. Fourteen investment analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $88.65.

PayPal Price Performance

The stock’s 50 day simple moving average is $86.34 and its 200-day simple moving average is $75.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.25 and a quick ratio of 1.25. The company has a market capitalization of $88.16 billion, a PE ratio of 20.99, a price-to-earnings-growth ratio of 1.66 and a beta of 1.44.

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

Hedge Funds Weigh In On PayPal

A number of institutional investors and hedge funds have recently modified their holdings of the company. Quest Partners LLC raised its holdings in PayPal by 198.9% during the second quarter. Quest Partners LLC now owns 10,957 shares of the credit services provider’s stock worth $636,000 after purchasing an additional 7,291 shares in the last quarter. Choreo LLC boosted its stake in PayPal by 284.4% in the second quarter. Choreo LLC now owns 21,128 shares of the credit services provider’s stock valued at $1,222,000 after acquiring an additional 15,631 shares in the last quarter. Dorsey & Whitney Trust CO LLC grew its holdings in shares of PayPal by 13.4% during the second quarter. Dorsey & Whitney Trust CO LLC now owns 8,774 shares of the credit services provider’s stock worth $509,000 after purchasing an additional 1,037 shares during the last quarter. Sachetta LLC increased its position in shares of PayPal by 60.1% during the second quarter. Sachetta LLC now owns 1,561 shares of the credit services provider’s stock worth $100,000 after purchasing an additional 586 shares in the last quarter. Finally, Andra AP fonden increased its position in shares of PayPal by 50.9% during the second quarter. Andra AP fonden now owns 90,769 shares of the credit services provider’s stock worth $5,267,000 after purchasing an additional 30,600 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Company Profile

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.