PagSeguro Digital (NYSE:PAGS) Cut to "Neutral" at Bank of America

Key Points

• Bank of America downgraded PagSeguro Digital (NYSE:PAGS) from buy to neutral and kept a $10 price target, implying modest upside from the prior close.
• Recent analyst sentiment has turned cautious overall, with multiple firms trimming ratings or targets. The stock now carries an average Hold rating and a consensus target price of $11.40.
• PagSeguro Digital’s latest earnings showed mixed results: $0.39 EPS narrowly missed estimates, while revenue of $642.01 million came in well below expectations. The company also disclosed a director sale of 200,000 shares.

PagSeguro Digital (NYSE:PAGS - Get Free Report) was downgraded by research analysts at Bank of America from a "buy" rating to a "neutral" rating in a research note issued on Wednesday, MarketBeat reports. They currently have a $10.00 price objective on the stock. Bank of America's target price suggests a potential upside of 7.58% from the company's previous close.

PAGS has been the topic of several other research reports. Weiss Ratings cut PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. dropped their price objective on PagSeguro Digital from $13.00 to $12.00 and set a "neutral" rating on the stock in a research note on Monday, April 13th. Wall Street Zen downgraded shares of PagSeguro Digital from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Finally, Autonomous Res downgraded shares of PagSeguro Digital from a "hold" rating to a "strong sell" rating in a report on Thursday, April 30th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $11.40.

PagSeguro Digital Price Performance

NYSE:PAGS opened at $9.29 on Wednesday. PagSeguro Digital has a one year low of $7.74 and a one year high of $12.32. The company has a market cap of $2.60 billion, a PE ratio of 6.83, a PEG ratio of 0.37 and a beta of 1.32. The firm has a 50-day moving average of $9.10 and a 200-day moving average of $9.96.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.01). The business had revenue of $642.01 million during the quarter, compared to the consensus estimate of $952.64 million. PagSeguro Digital had a net margin of 10.40% and a return on equity of 16.44%. On average, equities research analysts expect that PagSeguro Digital will post 1.7 earnings per share for the current fiscal year.

Insider Activity at PagSeguro Digital

In related news, Director Alexandre Mr Magnani sold 200,000 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $11.26, for a total transaction of $2,252,000.00. Following the completion of the sale, the director directly owned 607,390 shares of the company's stock, valued at approximately $6,839,211.40. This trade represents a 24.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Institutional Investors Weigh In On PagSeguro Digital

A number of hedge funds have recently made changes to their positions in PAGS. Artemis Investment Management LLP increased its holdings in PagSeguro Digital by 25.2% during the fourth quarter. Artemis Investment Management LLP now owns 6,764,422 shares of the company's stock worth $65,209,000 after buying an additional 1,363,223 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its position in shares of PagSeguro Digital by 108.2% during the 4th 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 period. State Street Corp grew its holdings in 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 purchasing an additional 139,227 shares during the period. Polunin Capital Partners Ltd lifted its position in shares of PagSeguro Digital by 0.4% during the 4th quarter. Polunin Capital Partners Ltd now owns 4,450,160 shares of the company's stock valued at $44,858,000 after buying an additional 16,700 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in shares of PagSeguro Digital by 0.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,926,789 shares of the company's stock valued at $37,854,000 after buying an additional 12,863 shares during the last quarter. 45.88% of the stock is currently owned by institutional investors.

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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