PayPal (NASDAQ:PYPL) Trading Down 1.4% Following Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) dropped 1.4% during trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $104.00 to $85.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. PayPal traded as low as $63.40 and last traded at $64.25. Approximately 2,956,026 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 11,193,841 shares. The stock had previously closed at $65.15.

Other research analysts have also issued research reports about the stock. JPMorgan Chase & Co. reiterated an “overweight” rating on shares of PayPal in a research note on Tuesday, February 4th. Macquarie raised their target price on shares of PayPal from $115.00 to $117.00 and gave the stock an “outperform” rating in a report on Monday, February 10th. Needham & Company LLC reissued a “hold” rating on shares of PayPal in a research note on Wednesday, February 26th. StockNews.com lowered PayPal from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Arete Research cut PayPal from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 27th. Sixteen research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $89.40.

Insider Transactions at PayPal

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

Institutional Trading of PayPal

Several large investors have recently modified their holdings of the company. Mpwm Advisory Solutions LLC acquired a new position in PayPal during the 4th quarter worth $25,000. Hurley Capital LLC bought a new position in PayPal during the fourth quarter worth $27,000. Rosenberg Matthew Hamilton boosted its holdings in PayPal by 67.6% in the 4th quarter. Rosenberg Matthew Hamilton now owns 310 shares of the credit services provider’s stock valued at $26,000 after purchasing an additional 125 shares during the period. Gordian Capital Singapore Pte Ltd acquired a new stake in PayPal in the 3rd quarter worth $26,000. Finally, Sugarloaf Wealth Management LLC increased its holdings in shares of PayPal by 344.3% during the 4th quarter. Sugarloaf Wealth Management LLC now owns 351 shares of the credit services provider’s stock worth $30,000 after purchasing an additional 272 shares during the period. 68.32% of the stock is owned by institutional investors.

PayPal Price Performance

The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.48. The stock’s 50-day moving average price is $75.75 and its 200 day moving average price is $80.86. The firm has a market cap of $64.55 billion, a price-to-earnings ratio of 16.27, a price-to-earnings-growth 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 earnings per share for the quarter, topping the consensus estimate of $1.11 by $0.08. PayPal had a return on equity of 23.67% and a net margin of 13.04%. The company had revenue of $8.37 billion for the quarter, compared to analyst estimates of $8.27 billion. During the same quarter last year, the firm earned $1.48 EPS. PayPal’s revenue for the quarter was up 4.2% compared to the same quarter last year. Equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

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.