PayPal Shares Climb 2.3% Following Analyst Upgrade

On October 30, 2024, shares of PayPal Holdings, Inc. (NASDAQ:PYPL) experienced a notable increase of 2.3%. This rise came after the financial services firm Monness Crespi & Hardt upgraded their price target for PayPal, raising it from $95.00 to $110.00. The firm has assigned a buy rating to the stock, reflecting positive sentiment about PayPal's future performance.

During trading, PayPal reached a peak of $83.62 before closing at $83.60. The trading volume was reported at 3,412,046 shares, which marks a significant decline of 75% from the average volume of around 13,475,505 shares. The previous trading close was at $81.70.

Additionally, several analysts have shared their views on PayPal recently. On October 18, Stephens raised their price target for the company from $75.00 to $85.00, maintaining a "equal weight" rating. Oppenheimer began their coverage of PayPal on October 1, issuing a "market perform" rating. Deutsche Bank increased their price target from $74.00 to $94.00 and retains a "buy" rating as of September 23. BMO Capital Markets also updated their price target to $73.00 with a "market perform" rating on October 3. On August 9, Daiwa America upgraded PayPal from a "moderate buy" to a "strong-buy." Currently, the consensus rating for PayPal is "Moderate Buy," based on feedback from a total of 36 research analysts, with an average price target of $78.77.

Institutional Investors' Activity

In recent months, various institutional investors have adjusted their stakes in PayPal. Legal & General Group Plc increased their holdings by 3.3% in the second quarter, now owning approximately 8.6 million shares valued at $501.2 million. Meanwhile, Clearbridge Investments raised their stake significantly by 28.1%, acquiring a total of around 8.5 million shares worth about $493.9 million. Primecap Management Co. CA also made strides, boosting their holdings by 180.7% to roughly 4.9 million shares valued at $287 million. Other institutional investors like Dimensional Fund Advisors LP and BNP PARIBAS ASSET MANAGEMENT Holding S.A. have also increased their positions. Notably, over 68% of PayPal's shares are owned by hedge funds and other institutional investors.

Market Overview & Earnings Report

PayPal's stock figures exhibit a 50-day moving average of $76.10 and a 200-day moving average of $67.41. With a market capitalization of approximately $84 billion, its price-to-earnings ratio stands at 20.22. The company reported a debt-to-equity ratio of 0.47, along with a current ratio and quick ratio both at 1.24.

On October 29, PayPal announced its earnings results, reporting an earnings per share (EPS) of $1.20, exceeding analysts' expectations of $1.07 by $0.13. The company reported revenue of $7.85 billion for the quarter, slightly below the expected $7.88 billion, but showed a year-over-year revenue growth of 6.0%. Analysts project that PayPal will achieve an EPS of 4.44 for the current fiscal year.

About PayPal

PayPal Holdings, Inc. operates a technology platform that facilitates digital payments worldwide for both merchants and consumers. The platform connects users, allowing them to conduct transactions and manage funds through several options, including bank accounts, PayPal or Venmo balances, and various credit products.

PayPal, Stocks, Trading