Incline Global Management LLC Trims Stock Position in PagSeguro Digital Ltd. $PAGS

Key Points

• Incline Global Management reduced its PagSeguro Digital stake by 28.3% in the fourth quarter, though the stock still represented about 3.2% of its portfolio. After the sale, the fund held 971,597 shares valued at roughly $9.37 million.
• Analyst sentiment remains cautious, with PagSeguro Digital carrying a consensus rating of “Hold” and an average price target of $12.00. Recent moves included a downgrade to “strong sell” from Autonomous Res and a lower target from JPMorgan.
• PagSeguro reported mixed quarterly results, posting EPS of $0.39 versus expectations of $0.40 while revenue came in well below estimates at $642.01 million. The stock was trading near $8.91, below its 52-week high of $12.32.

Incline Global Management LLC cut its stake in shares of PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) by 28.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 971,597 shares of the company's stock after selling 383,839 shares during the quarter. PagSeguro Digital makes up approximately 3.2% of Incline Global Management LLC's holdings, making the stock its 19th biggest holding. Incline Global Management LLC owned about 0.29% of PagSeguro Digital worth $9,366,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of PAGS. GAMMA Investing LLC increased its position in shares of PagSeguro Digital by 37.0% during the fourth quarter. GAMMA Investing LLC now owns 4,626 shares of the company's stock worth $45,000 after acquiring an additional 1,249 shares during the period. Atlas Capital Advisors Inc. purchased a new position in PagSeguro Digital during the fourth quarter valued at approximately $45,000. Caitong International Asset Management Co. Ltd increased its holdings in PagSeguro Digital by 108.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company's stock valued at $48,000 after buying an additional 2,569 shares during the period. Meeder Asset Management Inc. purchased a new position in PagSeguro Digital during the fourth quarter valued at approximately $53,000. Finally, Osaic Holdings Inc. increased its holdings in PagSeguro Digital by 93.4% during the second quarter. Osaic Holdings Inc. now owns 7,891 shares of the company's stock valued at $76,000 after buying an additional 3,810 shares during the period. 45.88% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on PAGS shares. Weiss Ratings reissued a "hold (c+)" rating on shares of PagSeguro Digital in a report on Friday, May 8th. Autonomous Res lowered shares of PagSeguro Digital from a "hold" rating to a "strong sell" rating in a report on Thursday, April 30th. JPMorgan Chase & Co. cut their price objective on shares of PagSeguro Digital from $13.00 to $12.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. Finally, Wall Street Zen lowered shares of PagSeguro Digital from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $12.00.

Insider Activity at PagSeguro Digital

In other news, Director Luis Frias bought 498,500 shares of the stock in a transaction on Friday, March 27th. The stock was bought at an average cost of $9.96 per share, for a total transaction of $4,965,060.00. Following the completion of the purchase, the director directly owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. The trade was a 22.92% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Alexandre Mr Magnani sold 200,000 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $11.26, for a total transaction of $2,252,000.00. Following the completion of the sale, the director owned 607,390 shares of the company's stock, valued at approximately $6,839,211.40. This trade represents a 24.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

PagSeguro Digital Stock Down 0.8%

Shares of PAGS opened at $8.91 on Thursday. The company has a market cap of $2.49 billion, a price-to-earnings ratio of 6.55, a price-to-earnings-growth ratio of 0.36 and a beta of 1.33. PagSeguro Digital Ltd. has a twelve month low of $7.74 and a twelve month high of $12.32. The company has a 50 day moving average of $9.73 and a two-hundred day moving average of $10.09.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.01). The firm had revenue of $642.01 million during the quarter, compared to analyst estimates of $952.64 million. PagSeguro Digital had a net margin of 10.40% and a return on equity of 16.44%. On average, sell-side analysts expect that PagSeguro Digital Ltd. will post 1.7 EPS for the current year.

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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