Traders Purchase Large Volume of Call Options on PagSeguro Digital (NYSE:PAGS)

Key Points

• Unusual options activity: Traders purchased 18,553 PagSeguro Digital call options, representing a 1,523% increase over the typical volume of 1,143 contracts.
• Mixed analyst sentiment: UBS maintained a “buy” rating despite lowering its price target to $12.50, while Jefferies initiated coverage with a “hold” rating and Bank of America downgraded the stock to “neutral.” The consensus rating is “Hold,” with a $10.98 target price.
• Financial and dividend update: PagSeguro reported quarterly EPS of $0.41, beating estimates by $0.02, and increased its quarterly dividend to $0.28 per share, implying an annualized yield of 11.6%.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) was the target of some unusual options trading on Tuesday. Traders purchased 18,553 call options on the stock. This is an increase of 1,523% compared to the typical volume of 1,143 call options.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on PAGS shares. Weiss Ratings lowered PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. UBS Group reduced their price target on PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating on the stock in a report on Friday, July 17th. Jefferies Financial Group began coverage on PagSeguro Digital in a report on Thursday, July 23rd. They set a "hold" rating and a $10.40 price objective for the company. Finally, 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. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, PagSeguro Digital has a consensus rating of "Hold" and a consensus target price of $10.98.

PagSeguro Digital Price Performance

Shares of NYSE:PAGS traded down $0.29 during trading on Tuesday, reaching $9.64. 2,554,943 shares of the company were exchanged, compared to its average volume of 3,549,217. The business's fifty day simple moving average is $9.26 and its 200-day simple moving average is $9.55. The firm has a market capitalization of $2.70 billion, a PE ratio of 6.74, a P/E/G ratio of 0.40 and a beta of 1.29. PagSeguro Digital has a 12-month low of $8.42 and a 12-month high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%.The firm had revenue of $942.97 million for the quarter, compared to analyst estimates of $1 billion. On average, sell-side analysts anticipate that PagSeguro Digital will post 1.67 EPS for the current fiscal year.

PagSeguro Digital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $0.28 per share. This is a boost from PagSeguro Digital's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 11.6%. The ex-dividend date is Wednesday, September 16th. PagSeguro Digital's payout ratio is 72.73%.

Insiders Place Their Bets

In related news, insider Silva Dutra sold 25,000 shares of PagSeguro Digital stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $9.24, for a total transaction of $231,000.00. Following the completion of the transaction, the insider directly owned 25,000 shares of the company's stock, valued at approximately $231,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Institutional Investors Weigh In On PagSeguro Digital

Hedge funds have recently made changes to their positions in the stock. 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 worth $40,000 after purchasing an additional 1,821 shares in the last quarter. Meeder Asset Management Inc. lifted its stake in PagSeguro Digital by 86.7% during the 1st quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company's stock valued at $103,000 after acquiring an additional 4,786 shares during the period. Confluence Investment Management LLC purchased a new stake in PagSeguro Digital in the second quarter valued at $125,000. DGS Capital Management LLC raised its position in PagSeguro Digital by 8.7% during the fourth quarter. DGS Capital Management LLC now owns 15,814 shares of the company's stock valued at $152,000 after acquiring an additional 1,271 shares in the last quarter. Finally, Integrity Alliance LLC. purchased a new stake in PagSeguro Digital during the fourth quarter worth $153,000. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Company Profile

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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