Causeway Capital Management LLC Increases Stock Holdings in PagSeguro Digital Ltd. $PAGS

Key Points

• Causeway Capital Management LLC increased its stake in PagSeguro by 44.6% during Q3, buying an additional 1,200,587 shares to hold 3,892,125 shares (about 1.18% of the company) valued at ~$38.9 million.
• Sell-side analysts show a mixed but constructive view with a consensus rating of "Moderate Buy" and a consensus price target of $11.86, driven by upgrades from firms like UBS and Susquehanna amid several hold ratings.
• PagSeguro posted Q results of $0.43 EPS (beating estimates) and revenue of $991.8M (slightly below estimates), trades at a market cap of ~$3.29B with a P/E of ~7.8, and recently paid a special dividend of $0.12 per share.

Causeway Capital Management LLC lifted its stake in shares of PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) by 44.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,892,125 shares of the company's stock after purchasing an additional 1,200,587 shares during the quarter. Causeway Capital Management LLC owned about 1.18% of PagSeguro Digital worth $38,921,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Unison Advisors LLC increased its stake in PagSeguro Digital by 1.5% in the 3rd quarter. Unison Advisors LLC now owns 74,926 shares of the company's stock valued at $749,000 after buying an additional 1,126 shares during the period. CWM LLC boosted its holdings in shares of PagSeguro Digital by 29.0% in the third quarter. CWM LLC now owns 5,255 shares of the company's stock valued at $53,000 after acquiring an additional 1,182 shares in the last quarter. Rhumbline Advisers increased its stake in shares of PagSeguro Digital by 0.5% during the second quarter. Rhumbline Advisers now owns 275,244 shares of the company's stock worth $2,653,000 after acquiring an additional 1,367 shares during the period. Citigroup Inc. increased its stake in shares of PagSeguro Digital by 0.5% during the third quarter. Citigroup Inc. now owns 386,890 shares of the company's stock worth $3,869,000 after acquiring an additional 2,027 shares during the period. Finally, First Trust Advisors LP raised its holdings in PagSeguro Digital by 9.7% during the second quarter. First Trust Advisors LP now owns 23,684 shares of the company's stock worth $228,000 after purchasing an additional 2,098 shares in the last quarter. 45.88% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on PAGS shares. Wall Street Zen downgraded PagSeguro Digital from a "buy" rating to a "hold" rating in a research note on Saturday. Susquehanna boosted their target price on shares of PagSeguro Digital from $11.00 to $12.00 and gave the stock a "positive" rating in a research report on Friday, November 14th. UBS Group raised their price objective on shares of PagSeguro Digital from $13.00 to $14.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of PagSeguro Digital in a report on Thursday, January 22nd. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, PagSeguro Digital presently has a consensus rating of "Moderate Buy" and a consensus price target of $11.86.

PagSeguro Digital Price Performance

PAGS stock opened at $9.98 on Tuesday. The company's 50 day simple moving average is $10.59 and its 200-day simple moving average is $9.95. PagSeguro Digital Ltd. has a 12 month low of $7.16 and a 12 month high of $12.32. The firm has a market capitalization of $3.29 billion, a PE ratio of 7.79, a P/E/G ratio of 0.41 and a beta of 1.38.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its earnings results on Wednesday, March 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. The firm had revenue of $991.79 million for the quarter, compared to analyst estimates of $1.03 billion. PagSeguro Digital had a return on equity of 16.20% and a net margin of 10.37%. As a group, sell-side analysts anticipate that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current year.

PagSeguro Digital Dividend Announcement

The business also recently disclosed a special dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were given a dividend of $0.12 per share. The ex-dividend date was Wednesday, January 28th. PagSeguro Digital's dividend payout ratio (DPR) is currently 10.94%.

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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