PayPal stock: buy or sell?

PYPL stock price: $106.04 -2.51% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

3

PayPal shares eased -2.51% to $106.04 today.

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 setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is PYPL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-15Wedbushn/aOutperform
2019-8-13GuggenheimNeutralBuy
2019-7-29GuggenheimNeutralSell
2019-7-26Berenberg Bankn/aBuy
2019-7-25Wells Fargo & Con/aOutperform
2019-7-25Robert W. Bairdn/aOutperform
2019-7-25Nomuran/aBuy
2019-7-25KeyCorpOverweightIn-Line
2019-7-25Craig HallumBuyPositive
2019-7-25Canaccord Genuityn/aHold
2019-7-19Wedbushn/aOutperform
2019-7-19Wedbushn/aOutperform
2019-7-18Jefferies Financial Groupn/aBuy
2019-7-16Deutsche BankBuyPositive
2019-7-10Morgan Stanleyn/an/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.

PYPL stock chart (daily)

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.

PYPL stock chart (weekly)

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:
PYPL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-26Berenberg BankReiteratesn/a$125.00-
2019-7-25Wells Fargo & CoReiterates$120.00$135.0012.5%
2019-7-25Robert W. BairdRaises Target$118.00$120.001.7%
2019-7-25NomuraRaises Target$123.00$139.0013%
2019-7-25KeyCorpReiterates$118.00$125.005.9%
2019-7-25Craig HallumReiterates$125.00$140.0012%
2019-7-25Canaccord GenuityRaises Target$105.00$110.004.8%
2019-7-19WedbushReiterates$125.00$140.0012%
2019-7-19WedbushRaises Target$125.00$140.0012%
2019-7-18Jefferies Financial GroupReiterates$125.00$140.0012%
2019-7-16Deutsche BankRaises Target$120.00$127.005.8%
2019-7-10Morgan StanleyRaises Target$114.00$129.0013.2%
(in average)$119.80$130.809.0%
Moving in a range from $140.00 and $110.00, the price prediction for PYPL stock is $130.80. In average, analysts' outlook on PYPL price forecast is positive, increasing the forecast by a 9.00% from previous estimations.

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.
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

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%

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 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%.
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 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 shares1,170.0 M
Float shares1,120.0 M
  - Institutional holdings (%)83.8%
  - Insider holdings (%)5.1%
Shares in short selling0.0%

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:
Stock3m6m12m
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