PagSeguro Digital (NYSE:PAGS) Issues Earnings Results

Key Points

• PagSeguro Digital reported earnings of $0.34 EPS for the quarter, surpassing the consensus estimate of $0.31, with a revenue of $930.17 million exceeding expectations of $901.10 million.
• The company declared a $0.12 dividend with a significant yield of 150.0%, while its dividend payout ratio stands at 11.48%.
• Analyst ratings show a consensus "Moderate Buy" for PagSeguro Digital, with target price variations from $10.00 to $14.00 among different brokerages.

PagSeguro Digital (NYSE:PAGS - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.03, Zacks reports. PagSeguro Digital had a net margin of 11.15% and a return on equity of 15.43%. The firm had revenue of $930.17 million during the quarter, compared to the consensus estimate of $901.10 million.

PagSeguro Digital Price Performance

NYSE:PAGS traded up $0.29 during midday trading on Friday, hitting $9.04. The company's stock had a trading volume of 5,627,418 shares, compared to its average volume of 5,158,359. The firm has a market cap of $2.98 billion, a P/E ratio of 7.41, a P/E/G ratio of 0.64 and a beta of 1.57. PagSeguro Digital has a fifty-two week low of $6.11 and a fifty-two week high of $14.82. The firm's 50 day moving average is $8.74 and its 200-day moving average is $8.50.

PagSeguro Digital Cuts Dividend

The firm also recently declared a -- dividend, which will be paid on Friday, August 15th. Investors of record on Wednesday, July 16th will be issued a $0.12 dividend. This represents a yield of 150.0%. The ex-dividend date is Wednesday, July 16th. PagSeguro Digital's dividend payout ratio is 11.48%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on PAGS. Susquehanna reduced their price objective on shares of PagSeguro Digital from $16.00 to $14.00 and set a "positive" rating for the company in a report on Wednesday, May 14th. Citigroup raised shares of PagSeguro Digital from a "neutral" rating to a "buy" rating and upped their price objective for the company from $7.00 to $10.00 in a research note on Tuesday, April 22nd. JPMorgan Chase & Co. raised their price objective on shares of PagSeguro Digital from $12.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Finally, Barclays lowered their price target on shares of PagSeguro Digital from $13.00 to $12.00 and set an "overweight" rating on the stock in a report on Wednesday, April 23rd. One analyst has rated the stock with a sell rating, four have assigned a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, PagSeguro Digital has a consensus rating of "Moderate Buy" and a consensus target price of $11.36.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Canada Pension Plan Investment Board raised its stake in shares of PagSeguro Digital by 132.3% in the second quarter. Canada Pension Plan Investment Board now owns 561,950 shares of the company's stock valued at $5,417,000 after acquiring an additional 320,000 shares in the last quarter. PDT Partners LLC lifted its holdings in shares of PagSeguro Digital by 59.7% during the 2nd quarter. PDT Partners LLC now owns 364,510 shares of the company's stock worth $3,514,000 after acquiring an additional 136,200 shares during the period. Sei Investments Co. lifted its stake in shares of PagSeguro Digital by 53.6% in the 2nd quarter. Sei Investments Co. now owns 354,349 shares of the company's stock valued at $3,416,000 after purchasing an additional 123,655 shares in the last quarter. Engineers Gate Manager LP raised its holdings in shares of PagSeguro Digital by 590.3% during the 2nd quarter. Engineers Gate Manager LP now owns 127,763 shares of the company's stock valued at $1,232,000 after buying an additional 109,254 shares during the period. Finally, Intech Investment Management LLC increased its holdings in PagSeguro Digital by 29.9% during the 1st quarter. Intech Investment Management LLC now owns 150,945 shares of the company's stock worth $1,152,000 after purchasing an additional 34,787 shares during the last quarter. Hedge funds and other institutional investors own 45.88% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.