PayPal stock: buy or sell?

PYPL stock price: $93.48 -7.11% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

Shares of PayPal collapsed a bloodcurdling -7.11% and closed at $93.48. On Tuesday PYPL climbed an extraordinary 12.37%.

PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide.

Should I buy PayPal stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, PayPal stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean PYPL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is PayPal stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for PYPL stock for the last 30 days.

PayPal stock analysis

Daily outlook

Shares of PayPal collapsed a bloodcurdling -7.11% and closed at $93.48.

PayPal shares collapsed -7.11% to $93.48 yesterday. Since price and SMA200d lines crossed down on Mar 16th, PYPL fell $-16.67 per share (-15.13%). On February/19, PYPL hit a new all time high, pushing higher than on February/14 tops. Check different trading setups that use ATHs as triggers.

PYPL stock chart (daily)

Weekly outlook

After sliding a dreadful -27.08% in a week last week, PayPal closed this week at $93.48 and climbed an exceptional 7.84%.

PayPal stock slid through the support what triggered further losses. Not so far away is the last price record PayPal marked by mid February, but since then it dropped a 24.89%. Since price and 40-weeks moving average lines crossed down last week, PYPL fell $-16.67 per share (-15.13%). Stocks below the 200 days moving average line are usually not recommended for average traders. Since SMA20w and SMA40w crossed up early March, PYPL price slid a -13.44%.

PYPL stock chart (weekly)

PayPal stock price history

PayPal stock went public on July 6th, 2015 with a price of $38.001. Since then, PYPL stock grew a 146.00%, with a yearly average of 36.50%. If you had invested right after PYPL's IPO a $1,000 in PayPal stock in 2015, it would worth $1,460.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PayPal stock historical price chart

PYPL stock reached all-time highs on February 19th with a price of $124.45.

PayPal stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not found any price prediction for PayPal stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on April, PayPal . Unfortunately, reported EPS is not yet available in our database.
PYPL earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.34n/a
2017-Q32017-10-190.430.467.0%
2017-Q42018-01-310.520.555.8%
2018-Q12018-04-250.410.459.8%
2018-Q22018-07-250.410.447.3%
2018-Q32018-10-180.390.427.7%
2018-Q42019-01-300.520.531.9%
2019-Q12019-04-230.68n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a super good increase of 18.00% to $15,451.00 M USD. Nonetheless, its profit margin (compared to sales) stayed stable to 13.31%, that is $2,057.00 million.

PayPal presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, PayPal TTM sales up to March 2019 were $15,894.00 and income $2,213.00 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem PayPal business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a slightly fine 2.87%. Nevertheless, profit margin (net income/sales) remained stable at 13.31%.

PYPL annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$6,730 M-$955 M14.2%-
2014$8,025 M19.24%$419 M5.2%-56.13%
2015$9,248 M15.24%$1,228 M13.3%193.08%
2016$10,842 M17.24%$1,401 M12.9%14.09%
2017$13,094 M20.77%$1,795 M13.7%28.12%
2018$15,451 M18.00%$2,057 M13.3%14.60%
TTM $15,894 M2.87%$2,213 M13.9%7.58%

Quarterly financial results

PayPal reported $4,128.00 M in revenues for 2019-Q1, a -2.32% less compared to previous quarter. Reported quarter earnings marked $667.00 million with a profit margin of 16.16%. Profit margin inched a 2.34% compared to previous quarter when profit margin was 13.82%. When comparing sales to same quarter last year, PayPal sales marked an extraordinary increase and skyrocketed a 12.02%.
PYPL quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,120 M-$411 M13.2%-
2017-Q3$3,230 M3.53%$380 M11.8%-7.54%
2017-Q4$3,744 M15.91%$620 M16.6%63.16%
2018-Q1$3,685 M-1.58%$511 M13.9%-17.58%
2018-Q2$3,857 M4.67%$526 M13.6%2.94%
2018-Q3$3,683 M-4.51%$436 M11.8%-17.11%
2018-Q4$4,226 M14.74%$584 M13.8%33.94%
2019-Q1$4,128 M-2.32%$667 M16.2%14.21%

PayPal ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For PayPal, 0.13% of all outstanding shares are owned by its staff.

Bearish positions for PYPL stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to PayPal:

PYPL
Market cap$109.4 B
Total shares1,170.0 M
Float shares1,170.0 M
  - Institutional holdings (%)86.1%
  - Insider holdings (%)0.1%
Shares in short selling0.0%

PayPal summary

Friday, March 27th, 2020
Open$97.00
Close$93.48
Day range$93.06 - $97.11
Previous close$100.63
Session gain-7.11%
Average true range$9.92
50d mov avg$110.62
100d mov avg$108.65
200d mov avg$108.81
Daily patternlt03a
Weekly pattern lt06c

PayPal performance

To better understand PayPal performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare PayPal to :
Stock3m6m12m
PYPLPayPal-14.55%-8.53%-9.98%

PayPal competitors

Unfortunately, we could not find any public company that could be defined as PayPal competitor. This doesn't mean PayPal does not have any competitor in the market, it's just we could not detected it.

    Latest PayPal stock news