PagSeguro Digital Ltd. (NYSE:PAGS) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Of nine analysts covering PagSeguro Digital, six recommend holding, two recommend buying, and one recommends selling. The average 12-month price target is $10.98.
• Recent financial results were mixed: PagSeguro reported quarterly EPS of $0.41, beating estimates of $0.39, while revenue of $942.97 million fell short of the $1 billion consensus estimate.
• The dividend increased: The company raised its quarterly dividend to $0.28 per share, equivalent to an annualized $1.12 dividend and a stated yield of 11.6%.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) has earned an average recommendation of "Hold" from the nine analysts that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $10.9833.

Several research analysts have recently weighed in on the company. Jefferies Financial Group initiated coverage on PagSeguro Digital in a report on Thursday, July 23rd. They set a "hold" rating and a $10.40 target price on the stock. UBS Group lowered their target price on shares of PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating for the company in a research note on Friday, July 17th. Weiss Ratings cut PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Finally, Bank of America cut shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective for the company. in a report on Wednesday, July 15th.

PagSeguro Digital Price Performance

Shares of PAGS stock opened at $9.64 on Wednesday. PagSeguro Digital has a 1 year low of $8.42 and a 1 year high of $12.32. The firm has a market capitalization of $2.70 billion, a price-to-earnings ratio of 6.74, a price-to-earnings-growth ratio of 0.39 and a beta of 1.29. The business has a fifty day moving average of $9.27 and a 200 day moving average of $9.55.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.02. The company had revenue of $942.97 million during the quarter, compared to the consensus estimate of $1 billion. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. As a group, equities research analysts expect that PagSeguro Digital will post 1.66 earnings per share for the current year.

PagSeguro Digital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be paid a dividend of $0.28 per share. The ex-dividend date is Wednesday, September 16th. This is a positive change from PagSeguro Digital's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 11.6%. PagSeguro Digital's dividend payout ratio (DPR) is presently 72.73%.

Insiders Place Their Bets

In related news, insider Silva Dutra sold 25,000 shares of the company's stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $9.24, for a total value of $231,000.00. Following the completion of the sale, the insider directly owned 25,000 shares of the company's stock, valued at $231,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Hedge Funds Weigh In On PagSeguro Digital

Several institutional investors and hedge funds have recently added to or reduced their stakes in PAGS. Caitong International Asset Management Co. Ltd boosted its position in PagSeguro Digital by 77.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,185 shares of the company's stock worth $40,000 after acquiring an additional 1,821 shares during the period. Meeder Asset Management Inc. boosted its position in shares of PagSeguro Digital by 86.7% during the 1st quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company's stock valued at $103,000 after purchasing an additional 4,786 shares in the last quarter. Confluence Investment Management LLC acquired a new position in PagSeguro Digital in the second quarter worth approximately $125,000. DGS Capital Management LLC raised its position in shares of PagSeguro Digital by 8.7% during the fourth quarter. DGS Capital Management LLC now owns 15,814 shares of the company's stock worth $152,000 after purchasing an additional 1,271 shares during the period. Finally, Integrity Alliance LLC. acquired a new stake in PagSeguro Digital during the 4th quarter worth about $153,000. Institutional investors and hedge funds own 45.88% of the company's stock.

PagSeguro Digital Company Profile

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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