PayPal (NASDAQ:PYPL) Shares Gap Up on Better-Than-Expected Earnings

PayPal Holdings, Inc. (NASDAQ:PYPL) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $58.94, but opened at $62.78. PayPal shares last traded at $63.40, with a volume of 8,237,425 shares changing hands.

The credit services provider reported $1.19 EPS for the quarter, beating the consensus estimate of $0.95 by $0.24. The company had revenue of $7.89 billion during the quarter, compared to the consensus estimate of $7.82 billion. PayPal had a net margin of 14.26% and a return on equity of 21.58%. The firm’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.83 earnings per share.

Analysts Set New Price Targets

PYPL has been the subject of a number of research analyst reports. Susquehanna upgraded shares of PayPal from a “neutral” rating to a “positive” rating and set a $71.00 price objective for the company in a report on Tuesday, July 2nd. New Street Research initiated coverage on shares of PayPal in a report on Friday, May 31st. They set a “buy” rating and a $80.00 price objective for the company. The Goldman Sachs Group restated a “neutral” rating and set a $69.00 price objective on shares of PayPal in a report on Monday, June 24th. Evercore ISI raised their price objective on shares of PayPal from $65.00 to $70.00 and gave the stock an “in-line” rating in a report on Tuesday, June 25th. Finally, Royal Bank of Canada restated an “outperform” rating and set a $84.00 price objective on shares of PayPal in a report on Friday, June 28th. Twenty-one equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $73.26.

Insider Activity at PayPal

In other news, Director Deborah M. Messemer sold 4,422 shares of the business’s stock in a transaction on Friday, May 24th. The shares were sold at an average price of $61.65, for a total transaction of $272,616.30. Following the sale, the director now owns 13,976 shares in the company, valued at approximately $861,620.40. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 0.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PayPal

A number of hedge funds have recently bought and sold shares of PYPL. Farmers & Merchants Trust Co of Chambersburg PA bought a new position in PayPal in the 4th quarter worth about $25,000. Pittenger & Anderson Inc. boosted its stake in PayPal by 77.5% in the 1st quarter. Pittenger & Anderson Inc. now owns 394 shares of the credit services provider’s stock worth $26,000 after purchasing an additional 172 shares in the last quarter. American National Bank bought a new position in PayPal in the 1st quarter worth about $27,000. Private Wealth Management Group LLC purchased a new position in PayPal in the 4th quarter worth about $29,000. Finally, Family Firm Inc. purchased a new position in PayPal in the 2nd quarter worth about $29,000. Institutional investors own 68.32% of the company’s stock.

PayPal Trading Up 7.6 %

The stock has a 50-day simple moving average of $60.86 and a two-hundred day simple moving average of $62.14. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market cap of $66.32 billion, a PE ratio of 16.22, a price-to-earnings-growth ratio of 0.95 and a beta of 1.42.

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.