Investors Purchase High Volume of Call Options on PagSeguro Digital (NYSE:PAGS)

Key Points

• Unusual options activity: Traders bought 12,732 call options on PagSeguro (NYSE:PAGS) — about a 605% increase over the typical volume of 1,807 calls, signaling heightened bullish interest or speculation.
• Generous dividend declared: PagSeguro announced a $0.26 quarterly dividend (ex-dividend Apr 22, payable June 1), implying a $1.04 annualized payout and a 10.4% yield with an 81.25% payout ratio.
• Insider buying: Director Luis Frias purchased 498,500 shares for roughly $4.97 million (a 22.9% increase in his holding), while another director sold 200,000 shares, indicating mixed insider activity.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) was the target of some unusual options trading on Tuesday. Stock traders bought 12,732 call options on the company. This is an increase of approximately 605% compared to the typical volume of 1,807 call options.

PagSeguro Digital Stock Performance

Shares of PagSeguro Digital stock traded down $0.21 during midday trading on Tuesday, hitting $10.05. The company had a trading volume of 1,425,555 shares, compared to its average volume of 3,986,065. The stock has a market capitalization of $3.31 billion, a P/E ratio of 7.85, a P/E/G ratio of 0.41 and a beta of 1.42. The company has a 50 day moving average of $10.37 and a 200 day moving average of $10.13. PagSeguro Digital has a 52-week low of $7.74 and a 52-week high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.01. The company had revenue of $991.79 million for the quarter, compared to the consensus estimate of $1.03 billion. PagSeguro Digital had a return on equity of 16.20% and a net margin of 10.37%. Equities research analysts forecast that PagSeguro Digital will post 1.66 EPS for the current year.

PagSeguro Digital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Wednesday, April 22nd will be paid a $0.26 dividend. The ex-dividend date is Wednesday, April 22nd. This represents a $1.04 annualized dividend and a dividend yield of 10.4%. PagSeguro Digital's dividend payout ratio is presently 81.25%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on PAGS. JPMorgan Chase & Co. decreased their target price on PagSeguro Digital from $13.00 to $12.00 and set a "neutral" rating for the company in a research report on Monday, April 13th. Wall Street Zen lowered PagSeguro Digital from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings reissued a "hold (c)" rating on shares of PagSeguro Digital in a research report on Thursday, January 22nd. Finally, UBS Group increased their target price on PagSeguro Digital from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $12.00.

Insider Buying and Selling

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

Institutional Trading of PagSeguro Digital

Institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its stake in PagSeguro Digital by 77.0% during 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. GAMMA Investing LLC boosted its stake in PagSeguro Digital by 37.0% during the 4th quarter. GAMMA Investing LLC now owns 4,626 shares of the company's stock valued at $45,000 after purchasing an additional 1,249 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new stake in PagSeguro Digital during the 4th quarter valued at $45,000. Farther Finance Advisors LLC purchased a new stake in PagSeguro Digital during the 3rd quarter valued at $46,000. Finally, Versant Capital Management Inc boosted its stake in PagSeguro Digital by 114.1% during the 3rd quarter. Versant Capital Management Inc now owns 5,156 shares of the company's stock valued at $52,000 after purchasing an additional 2,748 shares during the last quarter. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

About PagSeguro Digital

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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