UBS Group AG Acquires 679,490 Shares of PagSeguro Digital Ltd. $PAGS

Key Points

• UBS Group AG sharply increased its stake in PagSeguro Digital, buying 679,490 additional shares in the fourth quarter and lifting its holdings by 97.1% to 1.38 million shares.
• PagSeguro Digital reported mixed quarterly results, missing both earnings and revenue estimates with EPS of $0.39 versus $0.40 expected and revenue of $642.01 million versus $952.64 million expected.
• The company announced a quarterly dividend of $0.26 per share, implying an annualized yield of 11.5%, while analysts currently maintain a consensus Hold rating with a $12.00 price target.

UBS Group AG grew its holdings in PagSeguro Digital Ltd. (NYSE:PAGS - Free Report) by 97.1% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 1,379,312 shares of the company's stock after buying an additional 679,490 shares during the quarter. UBS Group AG's holdings in PagSeguro Digital were worth $13,297,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. GAMMA Investing LLC increased its stake 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 valued at $45,000 after buying an additional 1,249 shares during the period. Versant Capital Management Inc boosted its holdings in PagSeguro Digital by 114.1% in the third quarter. Versant Capital Management Inc now owns 5,156 shares of the company's stock valued at $52,000 after acquiring an additional 2,748 shares in the last quarter. CWM LLC boosted its holdings in 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. Osaic Holdings Inc. increased its position 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 period. Finally, Farther Finance Advisors LLC increased its position in PagSeguro Digital by 72.7% during the 4th quarter. Farther Finance Advisors LLC now owns 8,002 shares of the company's stock valued at $77,000 after purchasing an additional 3,368 shares during the period. 45.88% of the stock is currently owned by institutional investors.

PagSeguro Digital Trading Up 4.3%

Shares of PagSeguro Digital stock opened at $9.01 on Friday. The firm has a market capitalization of $2.52 billion, a P/E ratio of 6.62, a P/E/G ratio of 0.35 and a beta of 1.37. The business has a fifty day simple moving average of $10.17 and a two-hundred day simple moving average of $10.19. PagSeguro Digital Ltd. has a 12 month low of $7.74 and a 12 month high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last released its earnings results on Tuesday, May 12th. The company reported $0.39 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.01). The business had revenue of $642.01 million during the quarter, compared to analysts' expectations of $952.64 million. PagSeguro Digital had a return on equity of 16.44% and a net margin of 10.40%. Analysts predict that PagSeguro Digital Ltd. will post 1.68 earnings per share for the current year.

PagSeguro Digital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, April 22nd will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 11.5%. The ex-dividend date is Wednesday, April 22nd. PagSeguro Digital's dividend payout ratio is 81.25%.

Insider Transactions at PagSeguro Digital

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Autonomous Res cut shares of PagSeguro Digital from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 30th. Wall Street Zen upgraded shares of PagSeguro Digital from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. JPMorgan Chase & Co. decreased their price target on shares of PagSeguro Digital from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Weiss Ratings restated a "hold (c+)" rating on shares of PagSeguro Digital in a report on Friday, May 8th. Finally, UBS Group lifted their price objective on PagSeguro Digital from $13.00 to $14.00 and gave the company a "buy" rating in a research report on Wednesday, January 28th. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $12.00.

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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