PayPal (NASDAQ:PYPL) Sees Large Volume Increase on Earnings Beat

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) saw unusually-strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 5,799,903 shares changed hands during trading, a decline of 49% from the previous session's volume of 11,439,866 shares.The stock last traded at $64.74 and had previously closed at $64.93.

The credit services provider reported $1.33 earnings per share for the quarter, topping analysts' consensus estimates of $1.16 by $0.17. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company had revenue of $7.79 billion during the quarter, compared to analysts' expectations of $7.84 billion. During the same period in the prior year, the business posted $1.08 earnings per share. The firm's revenue for the quarter was up 1.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on PYPL shares. Evercore ISI began coverage on PayPal in a research note on Wednesday, April 9th. They set an "in-line" rating and a $65.00 price objective for the company. DZ Bank upgraded PayPal from a "hold" rating to a "buy" rating and set a $92.00 price target for the company in a research report on Friday, February 28th. BTIG Research restated a "neutral" rating on shares of PayPal in a report on Tuesday, February 4th. Seaport Res Ptn lowered shares of PayPal from a "hold" rating to a "strong sell" rating in a report on Thursday, April 17th. Finally, Citigroup reissued an "outperform" rating on shares of PayPal in a research note on Wednesday, February 5th. Two investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, twenty have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $85.00.

Insiders Place Their Bets

In other PayPal news, Director Gail J. Mcgovern sold 2,446 shares of the company's stock in a transaction dated Thursday, February 27th. The stock was sold at an average price of $72.15, for a total transaction of $176,478.90. Following the sale, the director now owns 29,734 shares in the company, valued at $2,145,308.10. This represents a 7.60 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.14% of the company's stock.

Institutional Trading of PayPal

Several hedge funds have recently added to or reduced their stakes in the company. Mpwm Advisory Solutions LLC acquired a new position in shares of PayPal during the fourth quarter worth $25,000. Rosenberg Matthew Hamilton boosted its position in shares of PayPal by 67.6% during the 4th quarter. Rosenberg Matthew Hamilton now owns 310 shares of the credit services provider's stock worth $26,000 after acquiring an additional 125 shares in the last quarter. Hurley Capital LLC purchased a new position in shares of PayPal in the 4th quarter valued at about $27,000. Garde Capital Inc. acquired a new stake in shares of PayPal during the 1st quarter worth about $28,000. Finally, Tsfg LLC lifted its stake in PayPal by 81.6% during the first quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock worth $29,000 after purchasing an additional 200 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Price Performance

The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.48. The stock has a fifty day moving average of $66.27 and a 200-day moving average of $78.39. The stock has a market capitalization of $64.82 billion, a price-to-earnings ratio of 16.54, a P/E/G ratio of 1.27 and a beta of 1.60.

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.

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