Citigroup Cuts PayPal (NASDAQ:PYPL) Price Target to $42.00

07 Feb 2026, 07:24 by Kim Johansen · The Markets Daily

PayPal (NASDAQ:PYPL – Free Report) had its target price decreased by Citigroup from $60.00 to $42.00 in a report released on Wednesday morning, Marketbeat Ratings reports. Citigroup currently has a neutral rating on the credit services provider’s stock.

A number of other analysts also recently weighed in on PYPL. TD Cowen restated a “hold” rating on shares of PayPal in a research report on Tuesday. Susquehanna decreased their price target on shares of PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a research note on Wednesday. Argus boosted their price objective on shares of PayPal from $81.00 to $87.00 and gave the stock a “buy” rating in a report on Wednesday, October 29th. Daiwa Securities Group lowered shares of PayPal from an “outperform” rating to a “neutral” rating and reduced their target price for the company from $77.00 to $61.00 in a report on Tuesday, January 13th. Finally, Deutsche Bank Aktiengesellschaft decreased their target price on shares of PayPal from $75.00 to $65.00 and set a “hold” rating on the stock in a research report on Friday, December 5th. Ten equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, PayPal has an average rating of “Hold” and an average price target of $64.28.

Get Our Latest Stock Analysis on PYPL

PayPal Stock Up 1.3%

Shares of NASDAQ:PYPL opened at $40.42 on Wednesday. The firm has a market capitalization of $37.21 billion, a PE ratio of 7.47, a price-to-earnings-growth ratio of 0.77 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.34 and a current ratio of 1.29. PayPal has a 52-week low of $38.88 and a 52-week high of $79.50. The firm has a fifty day moving average of $57.18 and a 200 day moving average of $64.44.

PayPal (NASDAQ:PYPL – Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same period last year, the firm earned $1.19 EPS. The company’s revenue for the quarter was up 4.0% on a year-over-year basis. As a group, research analysts anticipate that PayPal will post 5.03 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.4%. PayPal’s dividend payout ratio is presently 10.35%.

Insiders Place Their Bets

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the business’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the transaction, the insider owned 30,983 shares in the company, valued at approximately $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Aaron Webster sold 9,282 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the transaction, the executive vice president directly owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On PayPal

A number of large investors have recently made changes to their positions in the business. Brighton Jones LLC boosted its holdings in PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock valued at $596,000 after acquiring an additional 924 shares in the last quarter. Revolve Wealth Partners LLC bought a new position in PayPal in the 4th quarter worth $248,000. Sivia Capital Partners LLC lifted its position in shares of PayPal by 41.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after purchasing an additional 1,310 shares during the period. Hilltop National Bank bought a new stake in shares of PayPal during the 2nd quarter valued at about $27,000. Finally, Wealthcare Advisory Partners LLC boosted its stake in shares of PayPal by 20.2% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 9,157 shares of the credit services provider’s stock valued at $681,000 after purchasing an additional 1,541 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

Positive Sentiment: Deep-value case and buyback/dividend plan underpin a near-term bargain narrative; bulls point to low forward P/E, strong free cash flow and discretionary buybacks/new dividend as a potential floor. Read More.
Positive Sentiment: Some investors view a new CEO as a catalyst — profiles of Enrique Lores suggest his turnaround/operational experience could help execution if appointed. Read More.
Positive Sentiment: Several bullish commentaries argue long-term investors can be rewarded if PayPal stabilizes its product growth and execution — fueling bargain-hunting bounces. Read More.
Neutral Sentiment: Compass Point moved to Neutral, reflecting that some uncertainty (CEO transition, guidance) is now priced in — not a clear buy/sell signal. Read More.
Neutral Sentiment: Analysts are split: many cut targets and some keep “buy”/“outperform” calls, leaving consensus views mixed and volatility likely as estimates are re-worked. Read More.
Negative Sentiment: Q4 results disappointed — EPS and revenue missed expectations and management issued lower 2026 guidance, which triggered the initial selloff and higher volatility. Read More.
Negative Sentiment: CEO Alex Chriss was fired amid the branded-checkout slowdown and guidance cut; leadership turnover increases execution risk during a sensitive transition. Read More.
Negative Sentiment: Regulatory/litigation risk surfaced: a securities investigation was announced into the gap between prior outlook and reported results, adding legal and disclosure uncertainty. Read More.
Negative Sentiment: Heavy analyst price-target cuts, downgrades and visible insider selling amplified the selloff and investor caution this week. Read More.

PayPal Company Profile

(Get Free Report)

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.