PayPal Share Price Drops 1.36 as Trading Volume Plunges 21.59 to 112th in Market Activity Amid Mixed Analyst Ratings and Insider Selling

PayPal (PYPL) closed July 31, 2025, with a 1.36% decline in share price, trading at $71.45. The stock’s daily trading volume fell to $1.15 billion, a 21.59% drop from the previous day, ranking it 112th in market activity. Analyst ratings remain mixed, with KBW’s Sanjay Sakhrani maintaining a Buy rating and a $85 price target, while KeyBanc’s Alex Markgraff reiterated a Hold. Barclays’ Ramsey El Assal also endorsed a Buy, reflecting optimism about PayPal’s strategic initiatives in Venmo and BNPL services. However, insider sentiment remains negative, as 45 insiders sold shares in the past quarter, including President Suzan Kereere, who liquidated $304,824.88 worth of stock. The average price target among 24 analysts stands at $82.89, implying a 16.01% upside from current levels, though competitive pressures and valuation concerns temper bullish forecasts.

The stock’s technical indicators and earnings performance highlight both strengths and challenges. PayPal’s 12-month average EPS beat rate was 100%, outpacing its industry peers, yet recent volume growth in online branded transactions slowed to 5%, raising concerns about sustainability. Analysts noted that while Pay with Venmo transactions grew 45%, broader TPV expansion remained flat. Strategic shifts, including adjustments to BNPL offerings and credit cost management, will be critical for maintaining momentum. Despite the current Hold consensus from 13 out of 24 analysts, the market’s focus on liquidity-driven momentum suggests short-term volatility may persist.

Backtesting of a high-volume trading strategy from 2022 to 2025 showed a 166.71% return when holding top 500 volume stocks for one day, significantly outperforming the benchmark’s 29.18% gain. This approach capitalized on liquidity surges in assets like Eli Lilly and VICI Properties, underscoring the role of market structure in short-term performance. However, the strategy’s reliance on evolving liquidity dynamics means its effectiveness may vary in different market conditions. Investors are advised to monitor PayPal’s leverage management and macroeconomic resilience as key determinants of long-term growth.