UBS Group Issues Pessimistic Forecast for PagSeguro Digital (NYSE:PAGS) Stock Price

Key Points

• UBS Group cut PagSeguro Digital’s price target from $12.50 to $11.00 but maintained a “buy” rating, implying roughly 25% upside from the previous close.
• Analyst sentiment is mixed: Bank of America downgraded the stock to “neutral,” while the broader consensus is “hold,” with an average target price of $10.73.
• PagSeguro shares fell 1.4% to $8.78; the company recently exceeded quarterly EPS expectations but reported revenue below analyst forecasts. An insider also sold 25,000 shares, while institutional investors own 45.88% of the stock.

PagSeguro Digital (NYSE:PAGS - Get Free Report) had its target price reduced by stock analysts at UBS Group from $12.50 to $11.00 in a research note issued on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's target price would suggest a potential upside of 25.36% from the company's previous close.

Several other analysts have also commented on the stock. Bank of America lowered shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price target for the company. in a research report on Wednesday, July 15th. Weiss Ratings restated a "hold (c)" rating on shares of PagSeguro Digital in a research report on Friday, September 18th. Finally, Jefferies Financial Group started coverage on shares of PagSeguro Digital in a report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 price objective for the company. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $10.73.

PagSeguro Digital Stock Down 1.4%

Shares of NYSE PAGS traded down $0.12 on Tuesday, reaching $8.78. 2,344,097 shares of the company's stock traded hands, compared to its average volume of 3,516,876. The company has a market cap of $2.45 billion, a price-to-earnings ratio of 6.14, a price-to-earnings-growth ratio of 0.36 and a beta of 1.29. The business's 50 day simple moving average is $9.29 and its two-hundred day simple moving average is $9.48. PagSeguro Digital has a 12 month low of $8.42 and a 12 month high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.41 earnings per share 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. Analysts forecast that PagSeguro Digital will post 1.66 earnings per share for the current fiscal year.

Insider Buying and Selling

In other PagSeguro Digital news, insider Silva Dutra sold 25,000 shares of the business's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $9.24, for a total transaction of $231,000.00. Following the completion of the sale, the insider directly owned 25,000 shares in the company, valued at $231,000. The trade was a 50.00% 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.

Hedge Funds Weigh In On PagSeguro Digital

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lazard Asset Management LLC raised its stake in shares of PagSeguro Digital by 101.7% in the 1st quarter. Lazard Asset Management LLC now owns 1,986,771 shares of the company's stock valued at $19,907,000 after buying an additional 1,001,581 shares in the last quarter. Absolute Gestao de Investimentos Ltda. boosted its position in shares of PagSeguro Digital by 224.2% during 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. Sei Investments Co. raised its stake in shares of PagSeguro Digital by 168.5% during the 1st quarter. Sei Investments Co. now owns 611,057 shares of the company's stock worth $6,123,000 after purchasing an additional 383,452 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of PagSeguro Digital by 15.4% in the first quarter. Bank of America Corp DE now owns 479,554 shares of the company's stock valued at $4,805,000 after purchasing an additional 63,981 shares during the last quarter. Finally, Legal & General Group Plc boosted its holdings in PagSeguro Digital by 24.0% in the 4th quarter. Legal & General Group Plc now owns 468,145 shares of the company's stock valued at $4,513,000 after purchasing an additional 90,591 shares during the period. 45.88% of the stock is owned by institutional investors.

About PagSeguro Digital

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment-processing and digital banking services. The company serves individual consumers, self-employed professionals, microbusinesses and small and medium-sized enterprises, with a focus on expanding access to electronic payments and financial services in Brazil.

Its offerings include point-of-sale payment terminals, online payment acceptance, mobile payment tools, QR code and Pix transactions, digital accounts, payment cards, personal and business loans, and other financial products.

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