PagSeguro Digital Ltd. (NYSE:PAGS) Stock Has Consensus Target Price of $10.57

Key Points

• Analyst sentiment is mostly neutral: Eight analysts give PagSeguro Digital a consensus “Hold” rating, with a 12-month average price target of $10.57.
• The stock opened at $7.89, near its one-year low of $7.50; recent analyst actions included downgrades and price-target cuts, including Citigroup’s reduction to $8.
• PagSeguro beat quarterly EPS estimates ($0.41 versus $0.39) but revenue fell short of consensus. It raised its quarterly dividend to $0.28 per share, while company insiders sold 550,000 shares over the past three months.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) has been assigned an average rating of "Hold" from the eight analysts that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $10.57.

A number of research analysts have recently issued reports on PAGS shares. Bank of America downgraded shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective on the stock. in a research report on Wednesday, July 15th. UBS Group decreased their target price on shares of PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating for the company in a research report on Tuesday, September 29th. Weiss Ratings downgraded shares of PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday. Jefferies Financial Group began coverage on shares of PagSeguro Digital in a report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 price target on the stock. Finally, Citigroup lowered shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and cut their price target for the stock from $13.00 to $8.00 in a report on Tuesday, October 27th.

Insider Buying and Selling

In other PagSeguro Digital news, Director Alexandre Magnani sold 27,294 shares of the firm's stock in a transaction dated 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 owned 57,390 shares of the company's stock, valued at approximately $655,967.70. This trade represents a 32.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold 550,000 shares of company stock valued at $6,034,146 in the last three months.

Hedge Funds Weigh In On PagSeguro Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PAGS. Lazard Asset Management LLC boosted its position in PagSeguro Digital by 101.7% in the 1st quarter. Lazard Asset Management LLC now owns 1,986,771 shares of the company's stock worth $19,907,000 after purchasing an additional 1,001,581 shares in the last quarter. Absolute Gestao de Investimentos Ltda. grew its stake in shares of PagSeguro Digital by 224.2% during the 1st quarter. Absolute Gestao de Investimentos Ltda. now owns 1,175,125 shares of the company's stock worth $11,775,000 after purchasing an additional 812,641 shares during the period. Sei Investments Co. increased its holdings 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 valued at $6,123,000 after purchasing an additional 383,452 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of PagSeguro Digital during the 2nd quarter valued at approximately $4,407,000. Finally, Bank of America Corp DE lifted its stake in shares of PagSeguro Digital by 15.4% in the 1st 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 period. Hedge funds and other institutional investors own 45.88% of the company's stock.

PagSeguro Digital Price Performance

NYSE:PAGS opened at $7.89 on Thursday. PagSeguro Digital has a 1-year low of $7.50 and a 1-year high of $12.32. The company has a 50-day moving average of $9.67 and a 200 day moving average of $9.77. The firm has a market cap of $2.21 billion, a PE ratio of 5.52, a price-to-earnings-growth ratio of 0.31 and a beta of 1.46.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, beating analysts' consensus estimates of $0.39 by $0.02. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. The business had revenue of $942.97 million for the quarter, compared to the consensus estimate of $1 billion. Sell-side analysts anticipate that PagSeguro Digital will post 1.65 EPS for the current fiscal year.

PagSeguro Digital Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $1.12 annualized dividend and a yield of 14.2%. This is an increase from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's dividend payout ratio is currently 78.32%.

PagSeguro Digital Company Profile

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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