PayPal (NASDAQ:PYPL) Shares Gap Down - What's Next?

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $83.59, but opened at $78.04. PayPal shares last traded at $77.41, with a volume of 9,219,634 shares.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on PYPL. William Blair raised shares of PayPal to a "hold" rating in a research note on Tuesday, July 30th. Daiwa America upgraded PayPal from a "moderate buy" rating to a "strong-buy" rating in a research report on Friday, August 9th. BMO Capital Markets increased their price target on shares of PayPal from $72.00 to $73.00 and gave the stock a "market perform" rating in a research note on Thursday, October 3rd. Canaccord Genuity Group restated a "buy" rating and issued a $80.00 target price on shares of PayPal in a research note on Wednesday, July 31st. Finally, Sanford C. Bernstein downgraded PayPal from an "outperform" rating to a "market perform" rating and lifted their target price for the company from $75.00 to $80.00 in a research note on Thursday, October 10th. Seventeen analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $78.77.

PayPal Stock Performance

The stock has a market cap of $83.98 billion, a price-to-earnings ratio of 20.22, a P/E/G ratio of 1.51 and a beta of 1.44. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.47. The firm has a fifty day simple moving average of $75.94 and a 200-day simple moving average of $67.30.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, October 29th. The credit services provider reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.13. PayPal had a net margin of 14.30% and a return on equity of 22.82%. The company had revenue of $7.85 billion during the quarter, compared to analysts' expectations of $7.88 billion. During the same period last year, the business earned $0.97 EPS. The business's quarterly revenue was up 6.0% on a year-over-year basis. Analysts forecast that PayPal Holdings, Inc. will post 4.44 EPS for the current fiscal year.

Institutional Trading of PayPal

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. FCG Investment Co purchased a new position in shares of PayPal during the third quarter valued at approximately $1,079,000. Brown Financial Advisors bought a new position in PayPal in the 2nd quarter valued at $1,454,000. Cape Cod Five Cents Savings Bank bought a new position in shares of PayPal in the second quarter worth approximately $3,014,000. Distillate Capital Partners LLC raised its position in PayPal by 156,934.7% during the second quarter. Distillate Capital Partners LLC now owns 343,906 shares of the credit services provider's stock valued at $19,957,000 after purchasing an additional 343,687 shares in the last quarter. Finally, 1832 Asset Management L.P. lifted its holdings in shares of PayPal by 44.6% in the 1st quarter. 1832 Asset Management L.P. now owns 1,235 shares of the credit services provider's stock worth $83,000 after acquiring an additional 381 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

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.