PayPal Holdings, Inc Stock: Taking Some Heat
PayPal Holdings, Inc., (NYSE: PYPL) Stock Slashed to $40 Price Objective….
PayPal Holdings Inc., (NYSE: PYPL) is currently trading at $39.94 per share, down 0.17% or $0.07. The stock currently has a 52-week high of $30.30 on the low end and $41.75 on the high end. The 1-year target estimate price is $43.91 per share. At current prices, the market capitalisation of PayPal Holdings Inc., is currently $48.2 billion. The company has a price/earnings ratio of 36.31 and no dividend/yield to speak of. The next earnings date for PayPal is October 26-31, 2016. If we take a look at the earnings and estimated earnings for PayPal Holdings Inc., some interesting trends are apparent.
- Estimated earnings for Q3 2016 are $0.35
- Actual earnings in Q2 2016 and estimated earnings in Q2 2016 both came in at $0.36
- In Q1 2016, actual earnings were reported at $0.37 and estimated earnings were $0.35
- In Q4 2015, actual earnings came in at $0.36 with estimated earnings of $0.35
- In Q3 2015, actual earnings of $0.31 were reported with estimated earnings of $0.29
Revenue and earnings at PayPal have been increasing since 2014. The 2014, revenues totaled $8.03 billion and earnings were $419 million. In 2015, revenues increased to $9.25 billion with earnings of $1.23 billion. In terms of overall recommendation trends for the stock, the number of buy and strong buy ratings has steadily increased between June 2016 and September 2016. Of 43 analysts polled, 11 recommend PayPal as a strong buy, 14 as a buy and 15 as a hold. A minority rate the stock as an underperform. On a ratings scale of 1.0 (strong buy) to 5.0 (sell), PayPal Holdings Inc., (NASDAQ: PYPL) is at 2.3.
What’s News with PayPal?
The most important news of the day is the forward guidance by Canaccord Genuity for the stock. It has lowered its expectations for the company stock price from $45 to the new $40 price objective. Multiple research reports have carefully been studying PayPal stock. On Tuesday, 26 July, Evercore ISI initiated a sell rating on the stock with a $34 price target. Even RBC Capital Markets weighed in on the debate; but it took a bullish perspective on PayPal. It issued an outperform rating and a $46 forward guidance on the stock on 3 August 2016. The bears were out in full force with Piper Jaffray Cos, which issued a sell rating on 27 June 2016. An extremely bullish position was adopted by Wedbush, with a $50 price target on 1 August 2016.
In terms of overall analyst recommendations, there are some 20 buy ratings, 15 hold ratings and 3 sell ratings among a large group of companies engaged in research reporting. Major sales of PayPal stock include a July 26 transaction valued at $990,447.48, by SVP William J. Ready. This document was available on the SEC website, and the senior VP now owns stock worth approximately $4 million, or 105,906 shares. Canaccord anticipates earnings per share of $1.48 for 2016, but for 2017 that estimate has been revised lower to $1.69, from $1.80.
PayPal Appoints New Canadian General Manager
The new general manager of the company in Canada is Paul Parisi. This Canadian leader is focused on generating results and he has 17 years + experience in the payment processing industry. He will be tasked with heading up Canada’s PayPal division, which has been in operation for a decade. In total, Canada sports 6.4 million active customers, with some 250,000 small businesses across the nation. Parisi previously worked with American Express Canada. The outgoing general manager is Cameron Schmidt, who held his position for 4 years. Paul Parisi holds an undergraduate degree from the University of Guelph.
Disclosure: None.