PagSeguro Digital Ltd. (NYSE:PAGS) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts rate PagSeguro Digital as a Hold overall, with 8 analysts covering the stock and an average 12-month price target of $12.00. Ratings are mixed, with one sell, four holds, and three buys.
• The stock was down 11.8% and opened at $8.62, well below its 50-day and 200-day moving averages of $10.19. It also trades near the lower end of its 52-week range, with a low of $7.74 and high of $12.32.
• PagSeguro Digital's latest earnings missed estimates, reporting $0.39 EPS versus $0.40 expected and revenue of $642.01 million versus $952.64 million expected. The company also declared a quarterly dividend of $0.26 per share, yielding about 12.1%.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) has been given a consensus rating of "Hold" by the eight analysts that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating on the company. The average 12-month price target among brokers that have covered the stock in the last year is $12.00.

A number of brokerages have recently weighed in on PAGS. Wall Street Zen raised shares of PagSeguro Digital from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. dropped their price objective 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 reissued a "hold (c+)" rating on shares of PagSeguro Digital in a research note on Friday, May 8th. UBS Group increased their price objective on shares of PagSeguro Digital from $13.00 to $14.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Finally, Autonomous Res downgraded shares of PagSeguro Digital from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 30th.

PagSeguro Digital Trading Down 11.8%

Shares of PagSeguro Digital stock opened at $8.62 on Thursday. The company has a 50 day moving average of $10.19 and a 200-day moving average of $10.19. PagSeguro Digital has a 1-year low of $7.74 and a 1-year high of $12.32. The company has a market cap of $2.41 billion, a PE ratio of 6.74, a price-to-earnings-growth ratio of 0.40 and a beta of 1.37.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its quarterly 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). PagSeguro Digital had a return on equity of 16.20% and a net margin of 10.37%.The firm had revenue of $642.01 million for the quarter, compared to the consensus estimate of $952.64 million. Research analysts forecast that PagSeguro Digital will post 1.66 earnings per share for the current year.

PagSeguro Digital Announces Dividend

The business also recently disclosed 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 of this dividend is Wednesday, April 22nd. This represents a $1.04 annualized dividend and a yield of 12.1%. PagSeguro Digital's dividend payout ratio is presently 81.25%.

Insider Activity at PagSeguro Digital

In related news, Director Luis Frias acquired 498,500 shares of the company's stock in a transaction that occurred 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 purchase, the director directly owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. This trade represents a 22.92% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Alexandre Mr Magnani sold 200,000 shares of the 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 completion of the transaction, the director directly owned 607,390 shares of the company's stock, valued at approximately $6,839,211.40. The trade was a 24.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Hedge Funds Weigh In On PagSeguro Digital

Several large investors have recently modified their holdings of the business. Artemis Investment Management LLP raised its stake in shares of PagSeguro Digital by 25.2% during the fourth quarter. Artemis Investment Management LLP now owns 6,764,422 shares of the company's stock valued at $65,209,000 after acquiring an additional 1,363,223 shares during the last quarter. Robeco Institutional Asset Management B.V. raised its stake in shares of PagSeguro Digital by 108.2% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 6,610,914 shares of the company's stock valued at $63,729,000 after acquiring an additional 3,435,211 shares during the last quarter. State Street Corp raised its stake in shares of PagSeguro Digital by 3.1% during the fourth quarter. State Street Corp now owns 4,617,616 shares of the company's stock valued at $44,514,000 after acquiring an additional 139,227 shares during the last quarter. Polunin Capital Partners Ltd raised its stake in shares of PagSeguro Digital by 0.4% during the fourth quarter. Polunin Capital Partners Ltd now owns 4,450,160 shares of the company's stock valued at $44,858,000 after acquiring an additional 16,700 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in shares of PagSeguro Digital by 0.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,926,789 shares of the company's stock valued at $37,854,000 after acquiring an additional 12,863 shares during the last quarter. Institutional investors own 45.88% of the company's stock.

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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