PagSeguro Digital (NYSE:PAGS) Announces Earnings Results

Key Points

• PagSeguro Digital reported quarterly EPS of $0.39, missing the analyst estimate of $0.40 by one cent, and revenue came in at $642.01 million, well below the $952.64 million consensus.
• The company announced a quarterly dividend of $0.26 per share, which annualizes to $1.04 per share and implies a 10.6% yield.
• Analyst sentiment remains mixed: the stock has a consensus rating of Hold with an average price target of $12.00, while recent insider trades included a large director purchase and a separate director sale.

PagSeguro Digital (NYSE:PAGS - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.01), FiscalAI reports. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%. The business had revenue of $642.01 million during the quarter, compared to the consensus estimate of $952.64 million.

PagSeguro Digital Price Performance

Shares of NYSE PAGS traded up $0.05 during trading on Tuesday, reaching $9.79. 2,984,717 shares of the stock traded hands, compared to its average volume of 3,901,189. The company has a 50-day moving average of $10.25 and a 200-day moving average of $10.19. The stock has a market capitalization of $2.74 billion, a P/E ratio of 7.65, a price-to-earnings-growth ratio of 0.41 and a beta of 1.37. PagSeguro Digital has a 52-week low of $7.74 and a 52-week high of $12.32.

PagSeguro Digital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Wednesday, April 22nd will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 10.6%. The ex-dividend date of this dividend is Wednesday, April 22nd. PagSeguro Digital's dividend payout ratio is currently 81.25%.

Analyst Ratings Changes

A number of brokerages have recently commented on PAGS. Wall Street Zen raised PagSeguro Digital from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. JPMorgan Chase & Co. dropped their price target on PagSeguro Digital from $13.00 to $12.00 and set a "neutral" rating on the stock in a research report on Monday, April 13th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of PagSeguro Digital in a research report on Friday. UBS Group upped their price target on PagSeguro Digital from $13.00 to $14.00 and gave the company a "buy" rating in a research report on Wednesday, January 28th. Finally, Autonomous Res cut PagSeguro Digital from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, PagSeguro Digital currently has an average rating of "Hold" and a consensus price target of $12.00.

Insider Transactions 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 shares were acquired at an average price of $9.96 per share, with a total value of $4,965,060.00. Following the acquisition, the director owned 2,673,605 shares of the company's stock, valued at approximately $26,629,105.80. This trade represents a 22.92% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Alexandre Mr Magnani sold 200,000 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $11.26, for a total value of $2,252,000.00. Following the sale, the director directly owned 607,390 shares in the company, valued at $6,839,211.40. This trade represents a 24.77% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Trading of PagSeguro Digital

A number of institutional investors have recently added to or reduced their stakes in the stock. Mariner LLC lifted its holdings in PagSeguro Digital by 6.0% during the 4th quarter. Mariner LLC now owns 26,406 shares of the company's stock worth $255,000 after purchasing an additional 1,488 shares in the last quarter. First Trust Advisors LP lifted its holdings in PagSeguro Digital by 9.7% during the 2nd quarter. First Trust Advisors LP now owns 23,684 shares of the company's stock worth $228,000 after purchasing an additional 2,098 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in PagSeguro Digital by 108.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company's stock worth $48,000 after purchasing an additional 2,569 shares in the last quarter. Inceptionr LLC lifted its holdings in PagSeguro Digital by 11.8% during the 4th quarter. Inceptionr LLC now owns 24,846 shares of the company's stock worth $240,000 after purchasing an additional 2,613 shares in the last quarter. Finally, Vident Advisory LLC lifted its holdings in PagSeguro Digital by 29.1% during the 4th quarter. Vident Advisory LLC now owns 15,233 shares of the company's stock worth $147,000 after purchasing an additional 3,431 shares in the last quarter. Hedge funds and other institutional investors own 45.88% of the company's stock.

PagSeguro Digital Company Profile

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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