PagSeguro Digital (NYSE:PAGS) Stock Gets Downgrade from Citigroup

Key Points

• Citigroup downgraded PagSeguro Digital from “Buy” to “Neutral” and set an $8.00 price target, implying 6.53% downside from the prior close.
• Analyst sentiment is broadly cautious: PagSeguro has an average “Hold” rating and a $10.57 consensus price target, with two Buy, five Hold, and one Sell rating.
• The stock opened at $8.56 after reportedly falling 25.2%; meanwhile, insiders sold 550,000 shares worth approximately $6.03 million over the past 90 days.

PagSeguro Digital (NYSE:PAGS - Get Free Report) was downgraded by equities researchers at Citigroup from a "buy" rating to a "neutral" rating in a research report issued on Tuesday, Marketbeat Ratings reports. They currently have a $8.00 price objective on the stock. Citigroup's price objective would indicate a potential downside of 6.53% from the company's previous close.

Other research analysts have also issued research reports about the company. Jefferies Financial Group initiated coverage on PagSeguro Digital in a research report on Thursday, July 23rd. They set a "hold" rating and a $10.40 price target on the stock. Bank of America cut shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 target price for the company. in a research note on Wednesday, July 15th. Weiss Ratings upgraded shares of PagSeguro Digital from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, October 13th. Finally, UBS Group dropped their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating on the stock in a research report on Tuesday, September 29th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, PagSeguro Digital currently has an average rating of "Hold" and an average target price of $10.57.

PagSeguro Digital Trading Down 25.2%

PagSeguro Digital stock opened at $8.56 on Tuesday. PagSeguro Digital has a 1-year low of $7.50 and a 1-year high of $12.32. The company has a fifty day simple moving average of $9.76 and a 200 day simple moving average of $9.85. The company has a market cap of $2.39 billion, a P/E ratio of 5.99, a price-to-earnings-growth ratio of 0.46 and a beta of 1.27.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.39 by $0.02. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. The firm had revenue of $942.97 million for the quarter, compared to analysts' expectations of $1 billion. On average, equities research analysts forecast that PagSeguro Digital will post 1.65 EPS for the current year.

Insider Activity

In other news, Director Alexandre Magnani sold 27,294 shares of the firm's stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $11.43, for a total value of $311,970.42. Following the completion of the sale, the director directly owned 57,390 shares of the company's stock, valued at $655,967.70. This trade represents a 32.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders sold 550,000 shares of company stock valued at $6,034,146 over the last ninety days.

Institutional Investors Weigh In On PagSeguro Digital

Hedge funds have recently added to or reduced their stakes in the business. Signaturefd LLC raised its position in shares of PagSeguro Digital by 83.9% in the third quarter. Signaturefd LLC now owns 11,121 shares of the company's stock valued at $99,000 after purchasing an additional 5,074 shares during the period. SBI Securities Co. Ltd. boosted its holdings in shares of PagSeguro Digital by 38.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 4,471 shares of the company's stock worth $40,000 after buying an additional 1,233 shares during the period. Nisa Investment Advisors LLC boosted its holdings in shares of PagSeguro Digital by 849.1% during the 3rd quarter. Nisa Investment Advisors LLC now owns 21,536 shares of the company's stock worth $192,000 after buying an additional 19,267 shares during the period. CWA Asset Management Group LLC grew its stake in PagSeguro Digital by 62.4% in the 3rd quarter. CWA Asset Management Group LLC now owns 223,004 shares of the company's stock valued at $1,985,000 after buying an additional 85,644 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new position in PagSeguro Digital in the 2nd quarter valued at about $172,000. Institutional investors and hedge funds own 45.88% of the company's stock.

About PagSeguro Digital

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment and banking services to small and medium-sized businesses, independent professionals, and consumers. The company is part of the Universo Online (UOL) group and serves customers primarily in Brazil.

PagSeguro offers point-of-sale payment terminals and mobile payment solutions that allow merchants to accept credit, debit, contactless, and other electronic payments.

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