Insider Selling: PagSeguro Digital (NYSE:PAGS) Director Sells 100,000 Shares of Stock

Key Points

• PagSeguro director Alexandre Magnani sold 100,000 shares at an average price of $10.60, generating $1.06 million. The sale reduced his direct holdings by 16.46% to 507,390 shares.
• PAGS shares rose 4.3% to $11.13, while the company’s latest quarterly earnings of $0.41 per share exceeded analyst estimates of $0.39, despite revenue falling short of expectations.
• Analysts maintain a consensus “Hold” rating, with an average price target of $10.73. PagSeguro also raised its quarterly dividend to $0.28 per share, implying a 10.1% annualized yield.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) Director Alexandre Mr Magnani sold 100,000 shares of the stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $10.60, for a total value of $1,060,000.00. Following the transaction, the director directly owned 507,390 shares of the company's stock, valued at $5,378,334. The trade was a 16.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

PagSeguro Digital Trading Up 4.3%

PAGS stock traded up $0.45 during midday trading on Friday, reaching $11.13. The stock had a trading volume of 4,469,280 shares, compared to its average volume of 3,656,151. PagSeguro Digital Ltd. has a 52-week low of $8.42 and a 52-week high of $12.32. The company's fifty day simple moving average is $9.33 and its 200 day simple moving average is $9.49. The company has a market cap of $3.11 billion, a price-to-earnings ratio of 7.79, a price-to-earnings-growth ratio of 0.42 and a beta of 1.27.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, beating analysts' consensus estimates 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 net margin of 10.46% and a return on equity of 16.36%. Sell-side analysts predict that PagSeguro Digital Ltd. will post 1.65 EPS for the current year.

PagSeguro Digital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were issued a dividend of $0.28 per share. The ex-dividend date was Wednesday, September 16th. This represents a $1.12 annualized dividend and a dividend yield of 10.1%. This is an increase from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's payout ratio is presently 78.32%.

Hedge Funds Weigh In On PagSeguro Digital

Several large investors have recently made changes to their positions in PAGS. Caitong International Asset Management Co. Ltd increased 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 valued at $40,000 after purchasing an additional 1,821 shares during the last quarter. Meeder Asset Management Inc. boosted its position in shares of PagSeguro Digital by 86.7% during the first quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company's stock worth $103,000 after buying an additional 4,786 shares during the period. Confluence Investment Management LLC acquired a new stake in shares of PagSeguro Digital in the second quarter valued at $125,000. DGS Capital Management LLC raised its holdings in shares of PagSeguro Digital by 8.7% in the 4th quarter. DGS Capital Management LLC now owns 15,814 shares of the company's stock valued at $152,000 after buying an additional 1,271 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in PagSeguro Digital during the 2nd quarter worth about $156,000. 45.88% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages recently commented on PAGS. Bank of America downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective on the stock. in a research report on Wednesday, July 15th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PagSeguro Digital in a research note on Friday, September 18th. Jefferies Financial Group began coverage on shares of PagSeguro Digital in a research report on Thursday, July 23rd. They set a "hold" rating and a $10.40 price target on the stock. Finally, UBS Group reduced their target price on shares of PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating on the stock in a research note on Tuesday, September 29th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, PagSeguro Digital presently has a consensus rating of "Hold" and an average target price of $10.73.

About PagSeguro Digital

PagSeguro Digital Ltd. is a Brazilian financial technology company that operates the PagBank ecosystem. The company provides payment acceptance and digital banking services primarily to micro, small and medium-sized businesses, self-employed professionals and individual consumers in Brazil.

Its products and services include point-of-sale payment terminals, online payment processing, digital accounts, payment cards, money transfers, bill payment and other financial services. PagSeguro also offers tools designed to help merchants manage transactions and business finances through digital platforms and mobile applications.

PagSeguro was developed as part of Brazil's UOL group and became a publicly traded company on the New York Stock Exchange in 2018.

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