In a report released yesterday, Saul Martinez from HSBC downgraded PayPal Holdings to a Hold, with a price target of $47.00.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Saul Martinez has given his Hold rating due to a combination of factors indicating both uncertainty and support. He notes that PayPal’s branded checkout slowdown, a leadership transition, and withdrawn long-term guidance undermine confidence in management’s ability to reverse share losses quickly.
Nevertheless, he acknowledges that aggressive buybacks at depressed prices cushion EPS, the new CEO’s turnaround credentials could eventually help, and the reduced target price still implies mid-teens upside, leading him to keep a balanced Hold stance rather than move to Sell.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PYPL in relation to earlier this year.