PagSeguro Digital (NYSE:PAGS) Downgraded to Strong Sell Rating by Autonomous Res

Key Points

• Autonomous Res downgraded PagSeguro Digital from a "hold" to a "strong sell," while the analyst consensus remains an overall "Hold" with a $12.00 average price target (3 Buys, 4 Holds, 1 Sell).
• In the latest quarter PagSeguro beat EPS ($0.43 vs. $0.42) but missed revenue ($991.79M vs. $1.03B); the stock opened at $9.88, has a $3.25B market cap and a P/E of 7.71.
• Conflicting insider activity occurred: Director Alexandre Magnani sold 200,000 shares (cutting his stake ~24.8%), while Director Luis Frias bought 498,500 shares (increasing his stake ~22.9%).

PagSeguro Digital (NYSE:PAGS - Get Free Report) was downgraded by equities researchers at Autonomous Res from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday,Zacks.com reports.

Several other equities analysts have also recently weighed in on the stock. Wall Street Zen raised shares of PagSeguro Digital from a "hold" rating to a "buy" rating in a research note on Saturday. JPMorgan Chase & Co. cut their target price 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. UBS Group raised their target price 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, Weiss Ratings reaffirmed a "hold (c)" rating on shares of PagSeguro Digital in a research note on Thursday, January 22nd. Three investment 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's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $12.00.

PagSeguro Digital Price Performance

Shares of PAGS stock opened at $9.88 on Thursday. The company has a market capitalization of $3.25 billion, a price-to-earnings ratio of 7.71, a PEG ratio of 0.41 and a beta of 1.42. PagSeguro Digital has a one year low of $7.74 and a one year high of $12.32. The company's fifty day moving average price is $10.33 and its 200-day moving average price is $10.14.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.42 by $0.01. The firm had revenue of $991.79 million for the quarter, compared to the consensus estimate of $1.03 billion. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%. Equities research analysts expect that PagSeguro Digital will post 1.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other PagSeguro Digital news, Director Alexandre Mr Magnani sold 200,000 shares of PagSeguro Digital stock in a transaction on Friday, April 17th. The shares were sold at an average price of $11.26, for a total value 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 $6,839,211.40. This trade represents a 24.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Luis Frias acquired 498,500 shares of the company's stock in a transaction on Friday, March 27th. The stock was acquired at an average cost of $9.96 per share, with a total value of $4,965,060.00. Following the completion of the purchase, the director directly owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. This represents a 22.92% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Hedge Funds Weigh In On PagSeguro Digital

Institutional investors and hedge funds have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd boosted its stake in shares of PagSeguro Digital by 77.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,185 shares of the company's stock worth $40,000 after purchasing an additional 1,821 shares during the period. GAMMA Investing LLC boosted its stake in shares of PagSeguro Digital by 37.0% during the 4th quarter. GAMMA Investing LLC now owns 4,626 shares of the company's stock worth $45,000 after purchasing an additional 1,249 shares during the period. Atlas Capital Advisors Inc. purchased a new position in shares of PagSeguro Digital during the 4th quarter worth about $45,000. Farther Finance Advisors LLC purchased a new position in shares of PagSeguro Digital during the 3rd quarter worth about $46,000. Finally, Versant Capital Management Inc boosted its stake in shares of PagSeguro Digital by 114.1% during the 3rd quarter. Versant Capital Management Inc now owns 5,156 shares of the company's stock worth $52,000 after purchasing an additional 2,748 shares during the period. 45.88% of the stock is owned by hedge funds and other institutional investors.

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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