PagSeguro Digital Sees Unusually Large Options Volume (NYSE:PAGS)

Key Points

• Unusually high options activity: Investors purchased 5,014 PagSeguro call options, roughly 280% above the typical daily volume. The stock also rose $2.08 to $11.10 on trading volume more than double its average.
• Analyst sentiment remains cautious: PagSeguro has a consensus “Hold” rating from analysts, with an average price target of $10.73; recent actions included UBS lowering its target to $11 and Bank of America downgrading the stock to “Neutral.”
• Dividend increased amid mixed operating results: The company raised its quarterly dividend to $0.28, representing a 10.1% annualized yield, while its latest quarterly EPS beat estimates at $0.41 but revenue of $942.97 million fell short of the $1 billion consensus.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors purchased 5,014 call options on the stock. This is an increase of approximately 280% compared to the typical daily volume of 1,321 call options.

Insider Activity

In other news, insider Silva Dutra sold 25,000 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the insider owned 25,000 shares of the company's stock, valued at approximately $231,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Institutional Trading of PagSeguro Digital

Institutional investors have recently modified their holdings of the stock. DGS Capital Management LLC increased its position in shares of PagSeguro Digital by 8.7% during the fourth quarter. DGS Capital Management LLC now owns 15,814 shares of the company's stock worth $152,000 after purchasing an additional 1,271 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of 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 period. First Trust Advisors LP boosted its position in shares of PagSeguro Digital by 10.9% in the 1st quarter. First Trust Advisors LP now owns 18,678 shares of the company's stock valued at $187,000 after purchasing an additional 1,835 shares during the period. Royal Bank of Canada grew its stake in PagSeguro Digital by 3.7% during the 1st quarter. Royal Bank of Canada now owns 56,092 shares of the company's stock worth $562,000 after buying an additional 1,998 shares during the last quarter. Finally, Amundi grew its stake in PagSeguro Digital by 6.0% during the 1st quarter. Amundi now owns 54,586 shares of the company's stock worth $547,000 after buying an additional 3,067 shares during the last quarter. Hedge funds and other institutional investors own 45.88% of the company's stock.

Analyst Ratings Changes

PAGS has been the topic of several recent research reports. Jefferies Financial Group began coverage on shares of PagSeguro Digital in a research note on Thursday, July 23rd. They set a "hold" rating and a $10.40 target price on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of PagSeguro Digital in a research report on Friday, September 18th. UBS Group dropped their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating for the company in a research note on Tuesday, September 29th. Finally, Bank of America lowered 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. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PagSeguro Digital has a consensus rating of "Hold" and an average target price of $10.73.

PagSeguro Digital Stock Performance

NYSE PAGS traded up $2.08 during trading on Monday, reaching $11.10. 7,398,305 shares of the company's stock were exchanged, compared to its average volume of 3,545,548. The company has a 50 day moving average price of $9.24 and a two-hundred day moving average price of $9.46. The stock has a market cap of $3.10 billion, a P/E ratio of 7.77, a price-to-earnings-growth ratio of 0.36 and a beta of 1.27. PagSeguro Digital has a 1 year low of $8.42 and a 1 year high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. Research analysts forecast that PagSeguro Digital will post 1.65 EPS for the current fiscal year.

PagSeguro Digital Increases Dividend

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

PagSeguro Digital Company Profile

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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