PagSeguro Digital Ltd. (NYSE:PAGS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• PagSeguro Digital Ltd. has received an average consensus recommendation of “Moderate Buy” from nine brokerages, with a price target averaging $12.33.
• Hedge funds have recently increased their stakes in PagSeguro, with notable growth from firms like GAMMA Investing LLC and Mirae Asset Global Investments.
• The company announced a dividend cut, with a new dividend of $0.12 per share and an upcoming payment scheduled for November 3rd.

Shares of PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the nine brokerages that are covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating on the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $12.3333.

Several equities analysts have recently weighed in on PAGS shares. JPMorgan Chase & Co. lifted their price target on PagSeguro Digital from $12.00 to $13.00 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Wall Street Zen upgraded PagSeguro Digital from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 13th. Bank of America upgraded PagSeguro Digital from a "neutral" rating to a "buy" rating and lifted their price target for the company from $10.00 to $13.00 in a research report on Friday, September 19th. Finally, Zacks Research cut PagSeguro Digital from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 19th.

Hedge Funds Weigh In On PagSeguro Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. purchased a new position in PagSeguro Digital during the first quarter worth about $26,000. GAMMA Investing LLC grew its position in PagSeguro Digital by 61.2% during the second quarter. GAMMA Investing LLC now owns 3,510 shares of the company's stock worth $34,000 after buying an additional 1,333 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in PagSeguro Digital by 626.4% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,143 shares of the company's stock worth $39,000 after buying an additional 4,435 shares in the last quarter. CWM LLC grew its position in PagSeguro Digital by 78.1% during the second quarter. CWM LLC now owns 4,073 shares of the company's stock worth $39,000 after buying an additional 1,786 shares in the last quarter. Finally, Harbor Capital Advisors Inc. boosted its holdings in shares of PagSeguro Digital by 166.9% in the 1st quarter. Harbor Capital Advisors Inc. now owns 6,685 shares of the company's stock worth $51,000 after purchasing an additional 4,180 shares in the last quarter. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Stock Performance

Shares of NYSE PAGS opened at $10.01 on Wednesday. The stock has a market cap of $3.30 billion, a PE ratio of 8.07, a price-to-earnings-growth ratio of 0.52 and a beta of 1.56. PagSeguro Digital has a fifty-two week low of $6.11 and a fifty-two week high of $11.16. The stock has a fifty day moving average of $9.06 and a 200-day moving average of $8.93.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.03. The company had revenue of $930.17 million during the quarter, compared to analysts' expectations of $901.10 million. PagSeguro Digital had a return on equity of 15.52% and a net margin of 11.04%. On average, sell-side analysts predict that PagSeguro Digital will post 1.17 EPS for the current year.

PagSeguro Digital Cuts Dividend

The firm also recently announced a -- dividend, which will be paid on Monday, November 3rd. Investors of record on Monday, October 6th will be given a dividend of $0.12 per share. This represents a yield of 150.0%. The ex-dividend date is Monday, October 6th. PagSeguro Digital's payout ratio is presently 11.29%.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth.

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