PayPal (NASDAQ:PYPL) Trading Up 4.2% Following Better-Than-Expected Earnings

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) traded up 4.2% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $66.99 and last traded at $66.69. 7,523,961 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 14,500,533 shares. The stock had previously closed at $64.00.

The credit services provider reported $1.19 earnings per share for the quarter, topping analysts’ consensus estimates 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 net margin of 14.26% and a return on equity of 21.58%. The firm’s revenue was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.83 EPS.

Analyst Upgrades and Downgrades

PYPL has been the subject of several recent research reports. Evercore ISI upped their price target on PayPal from $65.00 to $70.00 and gave the stock an “in-line” rating in a report on Tuesday, June 25th. StockNews.com lowered shares of PayPal from a “buy” rating to a “hold” rating in a research note on Monday. The Goldman Sachs Group reissued a “neutral” rating and set a $69.00 price target on shares of PayPal in a research report on Monday, June 24th. BMO Capital Markets upped their price objective on shares of PayPal from $65.00 to $72.00 and gave the stock a “market perform” rating in a research report on Wednesday. Finally, Mizuho raised shares of PayPal from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $68.00 to $90.00 in a research report on Thursday, May 30th. Nineteen analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $74.19.

Insider Transactions at PayPal

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

Institutional Trading of PayPal

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Farmers & Merchants Trust Co of Chambersburg PA bought a new position in shares of PayPal in the 4th quarter worth approximately $25,000. Pittenger & Anderson Inc. lifted its position in PayPal by 77.5% during the first quarter. Pittenger & Anderson Inc. now owns 394 shares of the credit services provider’s stock valued at $26,000 after buying an additional 172 shares during the period. American National Bank purchased a new position in PayPal during the first quarter valued at $27,000. Private Wealth Management Group LLC bought a new stake in shares of PayPal during the 4th quarter valued at $29,000. Finally, Family Firm Inc. purchased a new stake in shares of PayPal in the 2nd quarter worth about $29,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Stock Performance

The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.47. The company’s 50 day moving average is $60.86 and its 200-day moving average is $62.16. The company has a market capitalization of $69.96 billion, a P/E ratio of 16.80, a price-to-earnings-growth ratio of 0.96 and a beta of 1.42.

PayPal Company Profile

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.