PagSeguro Digital Ltd. (NYSE:PAGS) Increases Dividend to $0.28 Per Share

Key Points

• PagSeguro Digital raised its quarterly dividend 7.7% to $0.28 per share, payable September 30 to shareholders of record on September 16. The dividend implies an annualized payout of $1.04 and a 12.9% yield.
• The dividend appears supported by earnings, with a current payout ratio of 69.8% and an expected future payout ratio of 57.5% based on projected next-year EPS of $1.81.
• PagSeguro reported quarterly EPS of $0.40, slightly above the $0.39 consensus, while revenue of $942.97 million fell short of the $1 billion estimate. Analysts have a consensus “Hold” rating and an average price target of $10.98, versus a share price of $8.66.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) announced a quarterly dividend on Tuesday, August 11th. Stockholders of record on Wednesday, September 16th will be given a dividend of 0.28 per share on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a dividend yield of 12.9%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a 7.7% increase from PagSeguro Digital's previous quarterly dividend of $0.26.

PagSeguro Digital has a payout ratio of 69.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect PagSeguro Digital to earn $1.81 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 57.5%.

PagSeguro Digital Price Performance

Shares of NYSE PAGS traded down $0.23 during midday trading on Wednesday, hitting $8.66. 2,046,887 shares of the company's stock were exchanged, compared to its average volume of 3,640,285. The stock's 50 day moving average price is $9.10 and its 200-day moving average price is $9.87. The firm has a market cap of $2.42 billion, a P/E ratio of 6.37, a PEG ratio of 0.45 and a beta of 1.31. PagSeguro Digital has a twelve month low of $8.26 and a twelve month high of $12.32.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.39 by $0.01. PagSeguro Digital had a return on equity of 16.44% and a net margin of 10.40%.The firm had revenue of $942.97 million for the quarter, compared to analysts' expectations of $1 billion. On average, analysts expect that PagSeguro Digital will post 1.69 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. 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 target on the stock. Wall Street Zen downgraded shares of PagSeguro Digital from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. UBS Group decreased their target price on shares of PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating for the company in a research report on Friday, July 17th. Autonomous Res cut shares of PagSeguro Digital from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 30th. Finally, Bank of America downgraded shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price target on the stock. in a research report on Wednesday, July 15th. Two equities research 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. According to MarketBeat, PagSeguro Digital presently has a consensus rating of "Hold" and an average price target of $10.98.

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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