PayPal (PYPL) Stock Turns to Former Square CEO After Rough Six Months

TLDR

• PayPal appointed Alyssa Henry, former CEO of Block’s Square business, to its board of directors on March 25, effective immediately.
• Henry brings over 30 years of experience in payments, commerce, and technology platforms, including roles at Amazon Web Services and Microsoft.
• Long-serving board member Gail J. McGovern, on the board since 2015, will not stand for re-election at the May annual meeting.
• Ann Sarnoff will take over as chair of the Corporate Governance and Nominating Committee.
• PYPL is trading around $44, down roughly 33% over the past six months, and was removed from the S&P 100 on March 23.

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PYPL is trading around $44.21, with a market cap of $40.7 billion.

PayPal Holdings, Inc., PYPL

PayPal Holdings (PYPL) has added Alyssa Henry, the former CEO of Block’s Square business, to its board of directors. The appointment was effective immediately, confirmed via an SEC filing on March 25.

Henry is one of fintech’s most recognisable merchant-commerce names. She led Square’s Seller business unit before Block’s corporate rebrand and also held senior leadership roles at Amazon Web Services and Microsoft, where she spent 12 years.

PayPal CEO Enrique Lores called Henry a “proven operator” with deep experience building payments ecosystems critical to merchants.

Board Chair David Dorman pointed to her track record in product innovation and disciplined execution as key reasons for the appointment.

Henry will serve on PayPal’s Compensation Committee and its Risk and Compliance Committee. Her role will include overseeing executive incentives and the company’s technical infrastructure.

The board now stands at 12 directors, 11 of whom are independent.

Leadership Reshuffle Continues

The appointment follows the removal of former CEO Alex Chriss, whose growth plans were considered too slow by the board. Lores took the reins just weeks before Henry’s board entry.

Long-standing board member Gail J. McGovern, who has served since 2015, will not stand for re-election at the Annual Meeting of Stockholders in May. PayPal thanked her for nearly a decade of service.

Independent director Ann Sarnoff will succeed McGovern as chair of the Corporate Governance and Nominating Committee after the May meeting.

Stock Under Pressure

PYPL has had a rough stretch. The stock is down approximately 33% over the past six months and was removed from the S&P 100 index on March 23, a direct result of a prolonged decline tied to missed earnings and legal challenges.

At a P/E ratio of 8.19, some analysts view the stock as undervalued at current levels.

Analyst sentiment is cautious. TipRanks data shows a “Hold” consensus from 34 analysts — 5 Buy, 25 Hold, 4 Sell — with a 12-month average price target of $50.71, implying around 12% upside from here.

BofA Securities has initiated coverage with a Neutral rating and a $48 price target. Truist Securities holds a Sell rating with a $39 target, citing skepticism over any strategic buyer given the company’s $41 billion enterprise value. Bernstein SocGen Group holds a Market Perform rating at $45.

Separate reports have suggested Stripe may be considering purchasing all or parts of PayPal, though those discussions are described as preliminary. Neither company has officially commented.

PayPal currently trades at a P/E of 8.19, well below its historical average, with the stock sitting near $44 at the time of writing.

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