PayPal (NASDAQ:PYPL) Shares Down 3.4% – Here’s Why

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) were down 3.4% on Thursday . The company traded as low as $78.53 and last traded at $78.85. Approximately 3,665,338 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 13,828,522 shares. The stock had previously closed at $81.65.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Wells Fargo & Company upped their target price on PayPal from $65.00 to $70.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 31st. Macquarie increased their target price on PayPal from $85.00 to $90.00 and gave the company an “outperform” rating in a report on Wednesday, July 31st. Robert W. Baird lifted their price objective on PayPal from $77.00 to $80.00 and gave the company an “outperform” rating in a research report on Wednesday, July 31st. JPMorgan Chase & Co. upped their price target on PayPal from $77.00 to $80.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 20th. Finally, Argus upgraded shares of PayPal from a “hold” rating to a “buy” rating in a research report on Wednesday, July 31st. Seventeen research analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $76.47.

PayPal Stock Performance

The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $82.57 billion, a price-to-earnings ratio of 19.86, a P/E/G ratio of 1.41 and a beta of 1.44. The business has a 50-day moving average price of $71.78 and a 200-day moving average price of $65.93.

PayPal (NASDAQ:PYPL) last announced its earnings results on Tuesday, July 30th. The credit services provider reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.20. The company had revenue of $7.89 billion for the quarter, compared to analyst estimates of $7.82 billion. PayPal had a return on equity of 22.82% and a net margin of 14.30%. The firm’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.83 EPS. As a group, sell-side analysts forecast that PayPal Holdings, Inc. will post 4.42 earnings per share for the current year.

Institutional Investors Weigh In On PayPal

Several institutional investors and hedge funds have recently made changes to their positions in PYPL. Bruce G. Allen Investments LLC increased its position in shares of PayPal by 7.4% in the 3rd quarter. Bruce G. Allen Investments LLC now owns 1,810 shares of the credit services provider’s stock valued at $141,000 after acquiring an additional 124 shares during the period. SYSTM Wealth Solutions LLC increased its holdings in shares of PayPal by 50.6% in the second quarter. SYSTM Wealth Solutions LLC now owns 497 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 167 shares during the period. Pittenger & Anderson Inc. raised its stake in shares of PayPal by 77.5% in the first quarter. Pittenger & Anderson Inc. now owns 394 shares of the credit services provider’s stock worth $26,000 after purchasing an additional 172 shares during the last quarter. Verity Asset Management Inc. lifted its holdings in shares of PayPal by 1.9% during the first quarter. Verity Asset Management Inc. now owns 9,708 shares of the credit services provider’s stock worth $650,000 after purchasing an additional 181 shares during the period. Finally, Indiana Trust & Investment Management CO boosted its position in PayPal by 18.6% in the first quarter. Indiana Trust & Investment Management CO now owns 1,175 shares of the credit services provider’s stock valued at $79,000 after buying an additional 184 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

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.