Bank of New York Mellon Corp Acquires New Position in PagSeguro Digital Ltd. $PAGS

Key Points

• Bank of New York Mellon acquired 486,971 PagSeguro shares worth approximately $4.4 million, giving it about 0.17% ownership. Institutional investors collectively own 45.88% of the company.
• PagSeguro reported quarterly EPS of $0.41, beating estimates of $0.39, although revenue of $942.97 million fell short of the $1 billion forecast.
• The company increased its quarterly dividend to $0.28 per share, implying an annualized yield of 11.5%. Analysts remain cautious, with an overall “Hold” rating and an average price target of $10.98.

Bank of New York Mellon Corp acquired a new stake in shares of PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 486,971 shares of the company's stock, valued at approximately $4,407,000. Bank of New York Mellon Corp owned approximately 0.17% of PagSeguro Digital as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also bought and sold shares of the company. Caitong International Asset Management Co. Ltd raised its holdings in PagSeguro Digital by 77.0% in 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 last quarter. Atlas Capital Advisors Inc. bought a new position in PagSeguro Digital in the 4th quarter valued at approximately $45,000. Meeder Asset Management Inc. purchased a new stake in PagSeguro Digital during the 4th quarter valued at $53,000. Osaic Holdings Inc. boosted its stake in PagSeguro Digital by 93.4% during the 2nd quarter. Osaic Holdings Inc. now owns 7,891 shares of the company's stock valued at $76,000 after purchasing an additional 3,810 shares during the last quarter. Finally, CWM LLC increased its holdings in shares of PagSeguro Digital by 50.4% in the 4th quarter. CWM LLC now owns 7,902 shares of the company's stock worth $76,000 after purchasing an additional 2,647 shares in the last quarter. 45.88% of the stock is owned by hedge funds and other institutional investors.

PagSeguro Digital Price Performance

Shares of PagSeguro Digital stock opened at $9.75 on Friday. PagSeguro Digital Ltd. has a 1-year low of $8.42 and a 1-year high of $12.32. The company's fifty day simple moving average is $9.16 and its 200-day simple moving average is $9.60. The stock has a market capitalization of $2.73 billion, a PE ratio of 6.82, a P/E/G ratio of 0.48 and a beta of 1.29.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.39 by $0.02. The firm had revenue of $942.97 million during the quarter, compared to analyst estimates of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. As a group, research analysts anticipate that PagSeguro Digital Ltd. will post 1.67 EPS for the current year.

PagSeguro Digital Increases Dividend

The business also recently disclosed 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. This is a boost from PagSeguro Digital's previous quarterly dividend of $0.26. The ex-dividend date is Wednesday, September 16th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 11.5%. PagSeguro Digital's dividend payout ratio is presently 72.73%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. Bank of America downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price target on the stock. in a report on Wednesday, July 15th. Weiss Ratings downgraded PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Jefferies Financial Group started coverage on PagSeguro Digital in a research report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 target price for the company. UBS Group lowered their target price on shares of PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating on the stock in a research note on Friday, July 17th. Finally, Wall Street Zen downgraded shares of PagSeguro Digital from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, PagSeguro Digital presently has an average rating of "Hold" and an average target price of $10.98.

Insider Activity

In related news, insider Silva Dutra sold 25,000 shares of the stock in a transaction that occurred on Monday, July 20th. The shares were 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 approximately $231,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company's product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.

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