Squarepoint Ops LLC Increases Position in PagSeguro Digital Ltd. $PAGS

Key Points

• Squarepoint Ops LLC more than doubled its PagSeguro position in the second quarter, adding 188,748 shares to own 362,352 shares valued at approximately $3.28 million. Institutional investors collectively hold 45.88% of the company.
• PagSeguro reported quarterly earnings of $0.41 per share, exceeding estimates by $0.02, although revenue of $942.97 million fell short of the $1 billion consensus forecast.
• The company increased its quarterly dividend to $0.28 per share, implying a 11.1% annualized yield. Analysts remain cautious, with the stock carrying an overall “Hold” rating and an average price target of $10.98.

Squarepoint Ops LLC increased its position in shares of PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) by 108.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 362,352 shares of the company's stock after purchasing an additional 188,748 shares during the period. Squarepoint Ops LLC owned 0.13% of PagSeguro Digital worth $3,279,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Caitong International Asset Management Co. Ltd boosted 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 buying an additional 1,821 shares during the period. Atlas Capital Advisors Inc. purchased a new position in shares of PagSeguro Digital in the fourth quarter valued at about $45,000. Meeder Asset Management Inc. purchased a new position in shares of PagSeguro Digital in the fourth quarter valued at about $53,000. Osaic Holdings Inc. boosted its stake in shares of PagSeguro Digital by 93.4% in the second quarter. Osaic Holdings Inc. now owns 7,891 shares of the company's stock worth $76,000 after acquiring an additional 3,810 shares during the period. Finally, Brooklyn Investment Group bought a new position in shares of PagSeguro Digital in the fourth quarter worth about $99,000. Hedge funds and other institutional investors own 45.88% of the company's stock.

PagSeguro Digital Trading Down 0.1%

NYSE:PAGS opened at $10.12 on Friday. The business's 50-day moving average is $9.24 and its 200 day moving average is $9.57. PagSeguro Digital Ltd. has a 12 month low of $8.42 and a 12 month high of $12.32. The company has a market capitalization of $2.83 billion, a P/E ratio of 7.08, a P/E/G ratio of 0.40 and a beta of 1.29.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.02. The business had revenue of $942.97 million during the quarter, compared to analysts' expectations of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. On average, research analysts forecast that PagSeguro Digital Ltd. will post 1.67 earnings per share for the current year.

PagSeguro Digital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 11.1%. This is a boost from PagSeguro Digital's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 16th. PagSeguro Digital's payout ratio is 72.73%.

Analysts Set New Price Targets

PAGS has been the topic of a number of research analyst reports. Wall Street Zen cut PagSeguro Digital from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Jefferies Financial Group initiated coverage on shares of PagSeguro Digital in a report on Thursday, July 23rd. They set a "hold" rating and a $10.40 price objective for the company. Weiss Ratings cut shares of PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. 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 report on Friday, July 17th. Finally, Bank of America lowered shares of 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. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $10.98.

Insiders Place Their Bets

In related news, insider Silva Dutra sold 25,000 shares of the business's stock in a transaction 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 sale, the insider owned 25,000 shares in the company, valued at approximately $231,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

About PagSeguro Digital

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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