PayPal stock: buy or sell?
Updated on:
August 23rd, 2019
3
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?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.None of our preferred buy setups matches with PayPal stock situation right now, hence this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is PayPal stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 15 ratings published for PYPL stock in the last 30 days. The general sentiment of these ratings is bullish for PYPL stock, with 9 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-15 | Wedbush | n/a | Outperform |
| 2019-8-13 | Guggenheim | Neutral | Buy |
| 2019-7-29 | Guggenheim | Neutral | Sell |
| 2019-7-26 | Berenberg Bank | n/a | Buy |
| 2019-7-25 | Wells Fargo & Co | n/a | Outperform |
| 2019-7-25 | Robert W. Baird | n/a | Outperform |
| 2019-7-25 | Nomura | n/a | Buy |
| 2019-7-25 | KeyCorp | Overweight | In-Line |
| 2019-7-25 | Craig Hallum | Buy | Positive |
| 2019-7-25 | Canaccord Genuity | n/a | Hold |
| 2019-7-19 | Wedbush | n/a | Outperform |
| 2019-7-19 | Wedbush | n/a | Outperform |
| 2019-7-18 | Jefferies Financial Group | n/a | Buy |
| 2019-7-16 | Deutsche Bank | Buy | Positive |
| 2019-7-10 | Morgan Stanley | n/a | n/a |
PayPal stock analysis
Daily outlook
Shares of PayPal eased a horrible -2.51% and closed at $106.04.
PayPal ended today at $106.04 and eased a horrible -2.51%. Since last Jul 31st when PYPL stock price broke down the SMA100d line, it slid $-6.00 per share (-5.36%). On Jul/16, PYPL hit a new all time high, pushing higher than on Jul 15th tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Shares of PayPal closed this week at $106.04 and remained constant a tight -0.11%. Late July PYPL collapsed a chilling -7.84% in just one week.
Not so far away is the last all-time high PayPal marked by mid July. Late December 2018 PYPL price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
PayPal stock price history
PayPal IPO was on July 6th, 2015 at $38.00 per share1. Since then, PYPL stock surged a 179.10%, with a yearly average of 44.80%. If you had invested right after PYPL's IPO a $1,000 in PayPal stock in 2015, it would worth $1,791.00 today.
1: Adjusted price after possible price splits or reverse-splits.
PayPal stock historical price chart
PYPL stock reached all-time highs on July/16 with a price of $121.48.
PayPal stock price target is $130.80
Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 found 12 price forecasts for PayPal stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-7-26 | Berenberg Bank | Reiterates | n/a | $125.00 | - |
| 2019-7-25 | Wells Fargo & Co | Reiterates | $120.00 | $135.00 | 12.5% |
| 2019-7-25 | Robert W. Baird | Raises Target | $118.00 | $120.00 | 1.7% |
| 2019-7-25 | Nomura | Raises Target | $123.00 | $139.00 | 13% |
| 2019-7-25 | KeyCorp | Reiterates | $118.00 | $125.00 | 5.9% |
| 2019-7-25 | Craig Hallum | Reiterates | $125.00 | $140.00 | 12% |
| 2019-7-25 | Canaccord Genuity | Raises Target | $105.00 | $110.00 | 4.8% |
| 2019-7-19 | Wedbush | Reiterates | $125.00 | $140.00 | 12% |
| 2019-7-19 | Wedbush | Raises Target | $125.00 | $140.00 | 12% |
| 2019-7-18 | Jefferies Financial Group | Reiterates | $125.00 | $140.00 | 12% |
| 2019-7-16 | Deutsche Bank | Raises Target | $120.00 | $127.00 | 5.8% |
| 2019-7-10 | Morgan Stanley | Raises Target | $114.00 | $129.00 | 13.2% |
| (in average) | $119.80 | $130.80 | 9.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since April, when PayPal posted its last earnings report, it remained constant a neutral -0.80%. Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.34 | n/a |
| 2017-Q3 | 2017-10-19 | 0.43 | 0.46 | 7.0% |
| 2017-Q4 | 2018-01-31 | 0.52 | 0.55 | 5.8% |
| 2018-Q1 | 2018-04-25 | 0.41 | 0.45 | 9.8% |
| 2018-Q2 | 2018-07-25 | 0.41 | 0.44 | 7.3% |
| 2018-Q3 | 2018-10-18 | 0.39 | 0.42 | 7.7% |
| 2018-Q4 | 2019-01-30 | 0.52 | 0.53 | 1.9% |
| 2019-Q1 | 2019-04-23 | 0.68 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, PayPal annual turnover rocketed a dazzling 18.00% to $15,451.00 million dollars from $13,094.00 marked in 2017. Nonetheless, its earnings margin (compared to sales) remained constant to 13.31%, that is $2,057.00 million. PayPal presents anual results in December, and to compare 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 earnings $2,213.00 million dollars. When comparing 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, raised a slightly fine 2.87%. Regarding profit margin, PayPal stayed constant 0.61% to 13.31%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $6,730 M | - | $955 M14.2% | - |
| 2014 | $8,025 M | 19.24% | $419 M5.2% | -56.13% |
| 2015 | $9,248 M | 15.24% | $1,228 M13.3% | 193.08% |
| 2016 | $10,842 M | 17.24% | $1,401 M12.9% | 14.09% |
| 2017 | $13,094 M | 20.77% | $1,795 M13.7% | 28.12% |
| 2018 | $15,451 M | 18.00% | $2,057 M13.3% | 14.60% |
| TTM | $15,894 M | 2.87% | $2,213 M13.9% | 7.58% |
Quarterly financial results
PayPal posted $4,128.00 million in sales 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 appreciated a 2.34% compared to previous quarter when profit margin was 13.82%. When comparing turnover to same quarter last year, PayPal sales marked an exceptional growth and climbed a 12.02%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $3,120 M | - | $411 M13.2% | - |
| 2017-Q3 | $3,230 M | 3.53% | $380 M11.8% | -7.54% |
| 2017-Q4 | $3,744 M | 15.91% | $620 M16.6% | 63.16% |
| 2018-Q1 | $3,685 M | -1.58% | $511 M13.9% | -17.58% |
| 2018-Q2 | $3,857 M | 4.67% | $526 M13.6% | 2.94% |
| 2018-Q3 | $3,683 M | -4.51% | $436 M11.8% | -17.11% |
| 2018-Q4 | $4,226 M | 14.74% | $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 shares of a stock, it's worth to have a look its ownership structure.PayPal shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 5.12% of all shares.
Bearish positions for PYPL stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related companies:
| PYPL | |
|---|---|
| Market cap | $124.1 B |
| Total shares | 1,170.0 M |
| Float shares | 1,120.0 M |
| - Institutional holdings (%) | 83.8% |
| - Insider holdings (%) | 5.1% |
| Shares in short selling | 0.0% |
PayPal summary
| Friday, August 23rd, 2019 | |
|---|---|
| Open | $108.93 |
| Close | $106.04 |
| Day range | $105.51 - $110.13 |
| Previous close | $108.77 |
| Session gain | -2.51% |
| Average true range | $2.78 |
| 50d mov avg | $113.33 |
| 100d mov avg | $111.64 |
| 200d mov avg | $101.26 |
| Daily pattern | |
| Weekly pattern | |
PayPal performance
To measure stock performance is always good to compare with competitors or related stocks. We compared PayPal against in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| PYPLPayPal | -3.47% | 10.48% | 17.69% |
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
- InvestorPlaceThis Dip in PayPal Stock Could Be the One You Have Been Waiting ForJuly 29, 2019
- Seeking AlphaBuy PayPal On Unwarranted Sell-Off Following EarningsJuly 25, 2019
- Seeking AlphaPayPal Spurs Scale Efficiency Through Venmo MonetizationJuly 24, 2019
- InvestorPlaceWhy PayPal Stock Could Have a Strong Earnings SeasonJuly 23, 2019
- InvestorPlaceStock Showdown: PayPal Stock Will Beat Square Stock Every TimeJune 26, 2019