PayPal stock: buy or sell?
Updated on:
January 17th, 2020
5
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?
Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. 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. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, PayPal stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| 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?
Banks and financial institutions publish stock ratings everyday.
At Stocks2.com, we collected 15 ratings published for PYPL stock in the last month. The general sentiment of these ratings is bullish for PYPL stock, with 11 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-9 | Citigroup | n/a | Buy |
| 2019-9-19 | Raymond James | n/a | Outperform |
| 2019-9-13 | Bank of America | n/a | Buy |
| 2019-9-12 | Canaccord Genuity | Hold | Buy |
| 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 |
PayPal stock analysis
Daily outlook
Shares of PayPal closed yesterday at $116.04 and stepped up a tiny 0.55%.
Shares of PayPal ended yesterday at $116.04 and stepped up a tiny 0.55%. Since price and SMA200d lines crossed up on Jan 2nd, PYPL climbed $7.87 (7.28%).
Weekly outlook
PayPal shares escalated 2.75% this week, ending at $116.04. Late November 2019 PYPL climbed an astounding 5.78% in just one week.
PayPal shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late December 2019, PYPL stock climbed unceasignly breaking out above its last top at $108.46. Since last week when PYPL stock price broke up the SMA40w line, it gained $7.28 (6.69%). Far behind is the all-time high PayPal recorded by mid July 2019 but price is just -4.48% below that top.
PayPal stock price history
PayPal IPO was on July 6th, 2015 at $38.00 per share1. Since then, PYPL stock grew a 205.40%, with a yearly average of 51.40%. If you had invested $1,000 in PayPal stock in 2015, it would worth $2,054.00 today.
1: Adjusted price after possible price splits or reverse-splits.
PayPal stock historical price chart
PYPL stock reached all-time highs on July with a price of $121.48.
PayPal stock price target is $128.20
How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' PYPL stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 12 price forecasts for PayPal stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-9 | Citigroup | Raises Target | $124.00 | $137.00 | 10.5% |
| 2019-9-19 | Raymond James | Lowers Target | $129.00 | $122.00 | -5.4% |
| 2019-9-13 | Bank of America | Reiterates | $131.00 | $127.00 | -3.1% |
| 2019-9-12 | Canaccord Genuity | Upgrades | $110.00 | $118.00 | 7.3% |
| 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% |
| (in average) | $120.70 | $128.20 | 6.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
After presenting its last earnings report on April, PayPal . 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
Compared to 2017, last anual revenues report draw an astounding growth of 18.00% to $15,451.00 million USD. Nevertheless, its profit margin (compared to revenues) stayed steady to 13.31%, that is $2,057.00 million. To have an updated picture of the financial situation of PayPal, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual PayPal TTM sales up to March 2019 were $15,894.00 and earnings were $2,213.00 million USD. 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 good 2.87%. Slightly worse, profit margin (net income/revenues) remained constant at 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 reported $4,128.00 M in sales for 2019-Q1, a -2.32% decline compared to previous quarter. Reported quarter income 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 revenues to same quarter last year, PayPal sales marked an amazing gain and rocketed 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 buy shares of a company, 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 0.10% of all shares.
Bearish positions for PYPL stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related stocks:
| PYPL | |
|---|---|
| Market cap | $135.8 B |
| Total shares | 1,170.0 M |
| Float shares | 1,170.0 M |
| - Institutional holdings (%) | 84.2% |
| - Insider holdings (%) | 0.1% |
| Shares in short selling | 0.0% |
PayPal summary
| Friday, January 17th, 2020 | |
|---|---|
| Open | $116.45 |
| Close | $116.04 |
| Day range | $115.47 - $116.70 |
| Previous close | $115.40 |
| Session gain | 0.55% |
| Average true range | $1.97 |
| 50d mov avg | $107.23 |
| 100d mov avg | $105.73 |
| 200d mov avg | $108.70 |
| Daily pattern | |
| Weekly pattern | lb03c |
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 :| Stock | 3m | 6m | 12m |
|---|---|---|---|
| PYPLPayPal | 14.64% | -2.18% | 27.35% |
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