Market Analysts see PayPal Holdings Inc. [PYPL] falling to $224. Time to buy?


PayPal Holdings Inc. [NASDAQ: PYPL] loss -2.43% on the last trading session, reaching $187.60 price per share at the time. The company report on December 20, 2021 that PAYPAL ALERT: Bragar Eagel & Squire, P.C. is Investigating PayPal Holdings, Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm.

Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against PayPal Holdings, Inc. (NASDAQ: PYPL) on behalf of long-term stockholders following a class action complaint that was filed against PayPal on August 20, 2021. Our investigation concerns whether the board of directors of PayPal have breached their fiduciary duties to the company.

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The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) PayPal had deficient disclosure controls and procedures; (ii) as a result, PayPal’s business practices with respect to PayPal Credit remained non-compliant with applicable laws and/or regulations; (iii) PayPal’s practices regarding payment of interchange rates related to its debit cards were likewise non-compliant with applicable laws and/or regulations; (iv) accordingly, PayPal’s revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable; (v) all the foregoing subjected the Company to an increased risk of regulatory investigation and enforcement; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.

PayPal Holdings Inc. represents 1.17 billion in outstanding shares, while the company has a total market value of $225.90 billion with the latest information. PYPL stock price has been found in the range of $186.30 to $193.125.

If compared to the average trading volume of 15.52M shares, PYPL reached a trading volume of 12456642 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about PayPal Holdings Inc. [PYPL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PYPL shares is $270.87 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PYPL stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for PayPal Holdings Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on January 03, 2022. While these analysts kept the previous recommendation, Wolfe Research dropped their target price from $300 to $250. The new note on the price target was released on December 13, 2021, representing the official price target for PayPal Holdings Inc. stock. Previously, the target price had yet another raise to $263, while UBS analysts kept a Buy rating on PYPL stock. On November 17, 2021, analysts decreased their price target for PYPL shares from 260 to 220.

The Average True Range (ATR) for PayPal Holdings Inc. is set at 6.49, with the Price to Sales ratio for PYPL stock in the period of the last 12 months amounting to 9.19. The Price to Book ratio for the last quarter was 9.97, with the Price to Cash per share for the same quarter was set at 11.04. Price to Free Cash Flow for PYPL in the course of the last twelve months was 46.07 with Quick ratio for the last quarter at 1.30.

Trading performance analysis for PYPL stock

PayPal Holdings Inc. [PYPL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.52. With this latest performance, PYPL shares dropped by -4.94% in over the last four-week period, additionally sinking by -38.08% over the last 6 months – not to mention a drop of -22.63% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PYPL stock in for the last two-week period is set at 44.33, with the RSI for the last a single of trading hit 45.03, and the three-weeks RSI is set at 42.54 for PayPal Holdings Inc. [PYPL]. The present Moving Average for the last 50 days of trading for this stock 198.46, while it was recorded at 190.62 for the last single week of trading, and 252.78 for the last 200 days.

PayPal Holdings Inc. [PYPL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and PayPal Holdings Inc. [PYPL] shares currently have an operating margin of +15.90 and a Gross Margin at +55.08. PayPal Holdings Inc.’s Net Margin is presently recorded at +19.60.

Return on Total Capital for PYPL is now 13.06, given the latest momentum, and Return on Invested Capital for the company is 16.21. Return on Equity for this stock inclined to 22.77, with Return on Assets sitting at 6.90. When it comes to the capital structure of this company, PayPal Holdings Inc. [PYPL] has a Total Debt to Total Equity ratio set at 48.58. Additionally, PYPL Total Debt to Total Capital is recorded at 32.70, with Total Debt to Total Assets ending up at 13.82. Long-Term Debt to Equity for the company is recorded at 47.86, with the Long-Term Debt to Total Capital now at 32.21.

Reflecting on the efficiency of the workforce at the company, PayPal Holdings Inc. [PYPL] managed to generate an average of $158,566 per employee. Receivables Turnover for the company is 0.67 with a Total Asset Turnover recorded at a value of 0.35.PayPal Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

PayPal Holdings Inc. [PYPL]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PYPL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for PayPal Holdings Inc. go to 20.43%.

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An analysis of insider ownership at PayPal Holdings Inc. [PYPL]

There are presently around $174,866 million, or 81.90% of PYPL stock, in the hands of institutional investors. The top three institutional holders of PYPL stocks are: VANGUARD GROUP INC with ownership of 93,894,135, which is approximately 0.634% of the company’s market cap and around 0.13% of the total institutional ownership; BLACKROCK INC., holding 81,049,941 shares of the stock with an approximate value of $15.2 billion in PYPL stocks shares; and STATE STREET CORP, currently with $8.49 billion in PYPL stock with ownership of nearly 0.118% of the company’s market capitalization.

Positions in PayPal Holdings Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 1,268 institutional holders increased their position in PayPal Holdings Inc. [NASDAQ:PYPL] by around 31,245,656 shares. Additionally, 1,057 investors decreased positions by around 36,459,767 shares, while 338 investors held positions by with 864,413,761 shares. The mentioned changes placed institutional holdings at 932,119,184 shares, according to the latest SEC report filing. PYPL stock had 127 new institutional investments in for a total of 8,423,277 shares, while 156 institutional investors sold positions of 7,741,270 shares during the same period.