PagSeguro Digital (NYSE:PAGS) Stock Rating Cut to "Neutral" at UBS Group

Key Points

• UBS downgraded PagSeguro Digital from Buy to Neutral and set an $8 price target, implying just 1.37% upside from the prior close.
• Analyst sentiment is broadly cautious: MarketBeat reports a consensus Hold rating and an average price target of $10.07, with one Buy, six Holds, and one Sell rating.
• PagSeguro’s latest quarterly EPS of $0.41 beat estimates of $0.39, while revenue of $942.97 million fell short of the $1 billion consensus.

PagSeguro Digital (NYSE:PAGS - Get Free Report) was downgraded by stock analysts at UBS Group from a "buy" rating to a "neutral" rating in a research note issued to investors on Thursday, MarketBeat Ratings reports. They presently have a $8.00 target price on the stock. UBS Group's target price would suggest a potential upside of 1.37% from the company's previous close.

Other analysts also recently issued reports about the stock. Weiss Ratings downgraded shares of PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday. Citigroup cut shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $13.00 to $8.00 in a report on Tuesday, October 27th. Bank of America lowered shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price target on the stock. in a research report on Wednesday, July 15th. Finally, Jefferies Financial Group started coverage on PagSeguro Digital in a report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 price target on the stock. One investment analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $10.07.

PagSeguro Digital Stock Up 3.2%

Shares of PAGS stock opened at $7.89 on Thursday. The stock has a 50-day simple moving average of $9.67 and a 200 day simple moving average of $9.77. The stock has a market capitalization of $2.21 billion, a P/E ratio of 5.52, a P/E/G ratio of 0.31 and a beta of 1.46. PagSeguro Digital has a fifty-two week low of $7.50 and a fifty-two week high of $12.32.

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, sell-side analysts anticipate that PagSeguro Digital will post 1.65 earnings per share for the current year.

Insider Buying and Selling

In other PagSeguro Digital news, Director Alexandre Magnani sold 27,294 shares of the company's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $11.43, for a total transaction of $311,970.42. Following the completion of the sale, the director directly owned 57,390 shares of the company's stock, valued at approximately $655,967.70. This represents a 32.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold 550,000 shares of company stock worth $6,034,146 over the last ninety days.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Lazard Asset Management LLC raised its stake in PagSeguro Digital by 101.7% during the 1st quarter. Lazard Asset Management LLC now owns 1,986,771 shares of the company's stock valued at $19,907,000 after purchasing an additional 1,001,581 shares during the period. Absolute Gestao de Investimentos Ltda. boosted its position in shares of PagSeguro Digital by 224.2% in the first quarter. Absolute Gestao de Investimentos Ltda. now owns 1,175,125 shares of the company's stock worth $11,775,000 after buying an additional 812,641 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of PagSeguro Digital in the second quarter worth $4,407,000. Sei Investments Co. grew its holdings in shares of PagSeguro Digital by 168.5% during the first quarter. Sei Investments Co. now owns 611,057 shares of the company's stock valued at $6,123,000 after buying an additional 383,452 shares in the last quarter. Finally, SEB Asset Management AB purchased a new position in shares of PagSeguro Digital during the first quarter valued at $2,827,000. 45.88% of the stock is owned by hedge funds and other institutional investors.

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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