The stock of PayPal Holdings Inc. (NASDAQ:PYPL) increased by $1.73 on Monday to finish at $63.27, up 2.81 percent. The last five days have seen an average of 15,935,701 shares of common stock traded. 11 times new highs were reached in the current year, with a fall of -$7.95. The average number of shares traded over the last 20 days was 17,476,990, while the average volume over the last 50 days totaled 17,240,172.
PYPL stock dropped -12.25% since last month. On 08/11/23, the company’s shares reached a one-month low of $61.47. The stock touched a high of $103.03 on 02/02/23, after rallying from a low of $58.95 in 52 weeks. The price of PYPL stock has declined by -11.16% or -$7.95 this year, reaching a new high 11 times. Still, the stock price is down -38.59% from the 52-week high.
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Insider Transactions
PYPL stock investors should be aware that PayPal Holdings Inc. (PYPL) stock had its last reported insider trading activity 179 days ago on Feb 17. On Feb 17, President and CEO SCHULMAN DANIEL H acquired 26,065 shares at $76.17 each. This transaction resulted in the insider spending $1,985,306. On Sep 16, Scheibe Gabrielle sold 150 shares at a price of US$94.95. After the transaction, the insider now owns 8,927 shares.
Valuation Metrics
PayPal Holdings Inc. (PYPL) has a trailing price-to-earnings (P/E) ratio of 17.67. Beta for the stock is 1.35. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.48, the price-to-book (PB) ratio of 3.57, and the price-to-cash flow ratio of 20.76.
Financial Health
For the three months ended June 29, PayPal Holdings Inc.’s quick ratio was 1.30, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.54, and the total debt to equity ratio is 0.54. As far as profitability goes, gross margin for the trailing twelve months is 41.30% percent. PayPal Holdings Inc.’s EBITDA margin for the year ended June 29 was 18.11%, whereas its operating margin stood at 15.70% for the same period. Based on annual data, it had gross profit of $11.65 billion and revenue of $27.52 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. PYPL’s return on assets (ROA) during the last 12 months has been 5.30%. There was a 9.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 20.40%.
Earnings Surprise
According to PayPal Holdings Inc.’s quarterly financial report for the quarter that ended June 29, it had $10.55 billion in total debt versus $4.4 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $7.29 billion, while revenues rose by 6.6% to $7.04 billion. It was predicted that PayPal Holdings Inc.’s quarterly earnings would be $1.16, but it ended up being $1.16. EBITDA was $1.4 billion for the quarter. At the end of PayPal Holdings Inc.’s most recent quarter ended June 29, its liabilities totaled 54.92 billion, while its total debt was $11.21 billion. Equity owned by shareholders amounts to $1.1 billion.
Technical Picture
Here’s a quick look at PayPal Holdings Inc.’s (PYPL) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 36.71%, suggesting the stock is Neutral, with a 69.21% historical volatility rate.
The stochastic %K and %D were 6.10% and 4.30% respectively, while the average true range (ATR) was 2.18. Based on the 14-day stochastic reading of 11.94%, the RSI (14) reading is 38.81%. On the 9-day MACD Oscillator, the stock is at -1.62, and the 14-day reading is at -5.19.
Analyst Ratings
PayPal Holdings Inc. (NASDAQ: PYPL) was downgraded by Evercore ISI to a an In-line rating in its latest research report. The stock was previously rated as a an Outperform. Analysts have assigned PayPal Holdings Inc. (PYPL) an Overweight rating. PYPL is a stock that is recommended for selling by 1 brokerage firm, while 14 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 27 others recommend it as a buy.
What is PYPL’s price target for the next 12 months?
The current consensus forecast for the stock is between $58.00 and $126.00, with a median target price of $85.00. In analyzing these forecasts, the average price target given by analysts for PayPal Holdings Inc. (PYPL) is $86.07.
