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RSI with sell signal for PayPal

The Relative Strength Index, abbreviated as RSI, indexes the movements of stock prices within 7 days by relating the upward movements to the number of movements. The standard range is from 0 to 100, The RSI of Paypal is 89.32, which means that the situation is considered overbought. This results in a rating as “Sell”. The RSI25 extends the calculation period to 25 days. The RSI for Paypal is at 53.37. This is considered an indicator of a situation that is neither overbought nor oversold, which is assigned a “Hold” rating. Overall, we therefore assign a “Sell” rating for this category.

What do shareholders think of PayPal?

During the last few weeks, an increase in positive comments about PayPal in social media could be observed. The sentiment barometer of market participants pointed into the green zone. The share therefore receives a “Buy” rating from the editorial team. The intensity or, to put it simply, the frequency of posts about a share provides an indication of whether the company is currently the focus of much or little investor attention. Paypal was discussed much less than normal, and there is also a decrease in attention. This leads to a “Sell” rating. Overall, this gives the stock a “Buy” rating.

PayPal in sector comparison: who beats whom?

The stock has generated a return of -70.01 percent in the past year. Compared to stocks in the same sector (“information technology”), Paypal is 127.55 percent below average (57.53 percent). The average annual return for securities from the same sector “IT services” is 84.39 percent. Paypal is currently 154.4 percent below this figure. Due to the underperformance, we rate the stock an overall “Sell” at this level.

Technical analysis of the stock

Comparing the moving average of the closing price of Paypal stock over the last 200 trading days (GD200) of $90.99 with the current price ($80.75), there is a deviation of -11.25 percent. The stock thus receives a “Sell” rating from a chart perspective for the GD200. Let’s look at the moving average of the closing price of the last 50 trading days (GD50). The last closing price for this value (USD 86.05) is also below the moving average (-6.16 percent), thus Paypal stock also receives a “Sell” rating for this. Overall, the company thus receives a “Sell” rating for the simple chart technique.

Still room for improvement in the share

The P/E ratio (price-earnings ratio) is currently 29.15 and is 79 percent below the industry average (industryIT services) of 141.84. The share is thus undervalued from today’s perspective. Therefore, Paypal receives a “Buy” rating at this level.

Analysts still see price potential

In the past 12 months, analysts have given Paypal 29 buy ratings, 4 hold ratings and 0 sell ratings. In the long term, the title thus receives a buy rating from institutional sources. Qualified analyses are also available for the last month. There were 8 buy, 2 hold and 0 sell ratings. On a short-term basis, this corresponds to an overall Buy rating for us. Finally, the analysts are also concerned with the current price of USD 80.75. On this basis, they expect a development of 80.41 percent and generate a mean price target at USD 145.68. We consider this development as a “Buy” assessment. In this respect, the overall rating by institutional analysts is “Buy”.