Engineers Gate Manager LP Sells 421,035 Shares of PagSeguro Digital Ltd. $PAGS

Key Points

• Engineers Gate Manager LP cut its PagSeguro Digital stake by 71.4% in the second quarter, selling 421,035 shares and retaining 168,975 shares valued at approximately $1.53 million. Institutional investors and hedge funds collectively own 45.88% of the company.
• PagSeguro reported quarterly EPS of $0.41, topping estimates by $0.02, while revenue of $942.97 million fell short of the $1 billion consensus estimate.
• The company increased its quarterly dividend to $0.28 per share, implying an annualized yield of 11.9%. Analysts maintain a consensus “Hold” rating with an average price target of $10.98, versus a recent share price of $9.45.

Engineers Gate Manager LP lessened its holdings in shares of PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) by 71.4% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 168,975 shares of the company's stock after selling 421,035 shares during the period. Engineers Gate Manager LP owned 0.06% of PagSeguro Digital worth $1,529,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in PAGS. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in PagSeguro Digital in the 1st quarter valued at about $1,987,000. Public Employees Retirement System of Ohio bought a new stake in shares of PagSeguro Digital during the second quarter valued at approximately $1,507,000. Lazard Asset Management LLC grew its stake in shares of PagSeguro Digital by 101.7% during the first quarter. Lazard Asset Management LLC now owns 1,986,771 shares of the company's stock valued at $19,907,000 after purchasing an additional 1,001,581 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of PagSeguro Digital in the second quarter valued at approximately $4,407,000. Finally, Turim 21 Investimentos Ltda. acquired a new stake in shares of PagSeguro Digital in the first quarter valued at approximately $1,499,000. 45.88% of the stock is currently owned by institutional investors and hedge funds.

PagSeguro Digital Price Performance

Shares of NYSE PAGS opened at $9.45 on Thursday. The business has a 50-day moving average of $9.29 and a 200-day moving average of $9.54. The stock has a market capitalization of $2.64 billion, a price-to-earnings ratio of 6.60, a PEG ratio of 0.38 and a beta of 1.29. PagSeguro Digital Ltd. has a fifty-two week low of $8.42 and a fifty-two week high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%.The business had revenue of $942.97 million for the quarter, compared to analyst estimates of $1 billion. On average, sell-side analysts expect that PagSeguro Digital Ltd. will post 1.66 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. Stockholders 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 represents a $1.12 dividend on an annualized basis and a dividend yield of 11.9%. This is an increase from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's dividend payout ratio (DPR) is currently 72.73%.

Insider Activity

In other news, insider Silva Dutra sold 25,000 shares of the stock in a transaction that occurred on 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 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 filing with the SEC, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

Several research firms have issued reports on PAGS. Jefferies Financial Group assumed coverage on PagSeguro Digital in a report on Thursday, July 23rd. They set a "hold" rating and a $10.40 price objective on the stock. UBS Group lowered their target price on PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating for the company in a research note on Friday, July 17th. Bank of America downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 target price for the company. in a research report on Wednesday, July 15th. Finally, Weiss Ratings lowered PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PagSeguro Digital currently has a consensus rating of "Hold" and a consensus price target of $10.98.

PagSeguro Digital 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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