PayPal Shares Rise 2.3% Following Analyst Upgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) saw its stock climb by 2.3% on Monday after Monness Crespi & Hardt announced an upgrade, increasing their price target from $95.00 to $110.00. The firm has maintained a buy rating on the stock. During trading, PayPal reached a high of $83.62 before settling at $83.60. The trading volume for the day was 3,412,046 shares, which is significantly lower than the average volume of 13,475,505 shares. The stock closed the previous trading day at $81.70.

Other analysts have also recently shared their thoughts on PayPal. Stephens raised their price target on the stock from $75.00 to $85.00, labeling it as “equal weight” on October 18th. Oppenheimer started coverage on PayPal on October 1st, giving it a “market perform” rating. Deutsche Bank increased their price target from $74.00 to $94.00, keeping a “buy” rating, while BMO Capital Markets adjusted their target from $72.00 to $73.00 and assigned a “market perform” rating. Daiwa America improved its rating on PayPal from “moderate buy” to “strong buy” on August 9th. In total, seventeen analysts have suggested holding the stock, eighteen recommend buying, and one has given a strong buy rating. According to MarketBeat, PayPal currently holds a consensus rating of “Moderate Buy” along with an average price target set at $78.77.

Institutional Trading Insights

In recent months, various institutional investors have adjusted their positions in PayPal. Legal & General Group Plc increased its holdings by 3.3% during the second quarter, now owning 8,636,644 shares valued at approximately $501 million after purchasing an additional 276,287 shares. Clearbridge Investments LLC lifted its stake by 28.1%, acquiring 1,866,925 additional shares, totaling 8,511,242 shares worth nearly $494 million. Primecap Management Co. CA raised its position substantially by 180.7%, now holding 4,946,460 shares valued at about $287 million. Dimensional Fund Advisors LP grew its stake by 14.8%, owning 3,166,795 shares worth approximately $184 million. BNP PARIBAS ASSET MANAGEMENT Holding S.A. also added to its stake by 5.1%, now holding 3,046,502 shares valued at around $177 million. Overall, 68.32% of PayPal shares are held by institutional investors and hedge funds.

Recent Performance and Outlook

Despite an uptick in stock price, PayPal was previously trading down by 4.0%. The company currently has a 50-day moving average price of $76.10 and a 200-day moving average price of $67.41. PayPal’s market capitalization stands at $83.98 billion, with a price-to-earnings ratio of 20.22 and a PEG ratio of 1.51. The company has a debt-to-equity ratio of 0.47, with both a current ratio and a quick ratio at 1.24.

PayPal recently reported its earnings for the quarter ending on October 29th. The company disclosed earnings per share (EPS) of $1.20, surpassing the analysts’ expectations of $1.07 by $0.13. While the company achieved a revenue of $7.85 billion, it fell short of the anticipated $7.88 billion, but still represented a 6.0% increase from the previous year. Analysts predict that PayPal Holdings, Inc. will report an EPS of 4.44 for the current fiscal year.

About PayPal

PayPal Holdings, Inc. operates a global technology platform for digital payments, connecting merchants and consumers alike. The platform facilitates transactions and allows customers to send and receive payments online and in person, utilizing various payment methods such as bank accounts, PayPal, Venmo, as well as credit and debit cards, and cryptocurrencies.

PayPal, Stocks, Trading