TLDR
- PayPal insider Suzan Kereere sold 37,613 shares worth $1.56M, cutting her stake by 54.8%
- Q4 EPS came in at $1.23, missing the $1.29 estimate; revenue of $8.68B missed the $8.82B forecast
- PayPal gave a weak 2026 outlook, guiding for a “low-single digit decline to slightly positive” in adjusted EPS vs. analyst expectations of 8% growth
- CEO Alex Chriss is stepping down, with HP’s Enrique Lores set to take over
- Stock trades at a P/E of 7.7, down ~87% from its all-time high, with an average analyst target of $61.03
PayPal is having a rough stretch, and the headlines aren’t helping.
On February 18, insider Suzan Kereere sold 37,613 shares at an average of $41.49, totaling $1,560,563. That sale cut her position by 54.8%, leaving her with 30,983 shares.
The timing raised eyebrows. The stock was already under pressure following a weak Q4 earnings report and a surprise CEO change announced on February 3.
PayPal reported Q4 EPS of $1.23, missing the consensus estimate of $1.29. Revenue came in at $8.68 billion, short of the $8.82 billion analysts expected. Year-over-year revenue growth was 4%.
The bigger shock was the 2026 outlook. Management guided for adjusted EPS growth in a “low-single digit decline to slightly positive” range. Wall Street had penciled in an 8% gain. The stock dropped 20% immediately after the report.
Alex Chriss, who took the CEO role in September 2023, is stepping down at the end of February. Enrique Lores, CEO of HP since 2019 and a PayPal board member since 2021, will take over. The sudden transition caught investors off guard — there had been no prior talk of a leadership change.
Analyst Sentiment Turns Cautious
The analyst community has shifted. Canaccord Genuity cut its price target from $100 to $42 and kept a “hold” rating. Rothschild & Co Redburn went further, slashing its target from $50 to $32 and issuing a “sell.” Raymond James set a $48 target, while Piper Sandler trimmed its target from $76 to $74 with a “neutral” rating.
Of 44 analysts tracked by MarketBeat, nine rate the stock a buy, thirty a hold, and five a sell. The average price target sits at $61.03 — well above where the stock is currently trading near $41.73.
Several securities-fraud class action suits have also been filed, covering the period from February 25, 2025 through February 2, 2026. The lawsuits allege misstatements around growth and guidance.
The Bull Case Still Exists — Just Quietly
Not everyone is walking away. Vanguard increased its PayPal stake by 6.5% in Q4, now holding over 90 million shares. Norges Bank initiated a new position worth roughly $950 million. Invesco added 9.7% to its holdings.
The stock’s P/E of 7.7 is near historic lows, and PayPal generated $5.6 billion in free cash flow in 2025. The company plans to repurchase $6 billion in shares this year — a meaningful move at current prices.
With 231 million monthly active accounts and a two-sided platform covering both merchants and consumers, the network effect argument remains intact. But with no clear catalyst to accelerate revenue growth, that argument has limits.
PYPL traded at $41.73 on February 19, within a 52-week range of $38.46 to $79.50. The stock is down roughly 30% year-to-date.
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