PagSeguro Digital (NYSE:PAGS) Shares Gap Down - Here's Why

Key Points

• PagSeguro Digital's shares gapped down from a previous close of $9.44 to an opening price of $8.60, indicating a significant drop in stock value.
• Analysts have mixed ratings on the stock, with target prices varying from $10.00 to $14.00, suggesting uncertainty in its future performance.
• The company recently cut its dividend to $0.12, representing a yield of 150.0%, indicating a potential shift in its financial strategy amidst fluctuating stock prices.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $9.44, but opened at $8.60. PagSeguro Digital shares last traded at $8.88, with a volume of 1,189,685 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages recently commented on PAGS. JPMorgan Chase & Co. increased their target price on shares of PagSeguro Digital from $12.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. Barclays reduced their target price on shares of PagSeguro Digital from $13.00 to $12.00 and set an "overweight" rating for the company in a report on Wednesday, April 23rd. Citigroup upgraded shares of PagSeguro Digital from a "neutral" rating to a "buy" rating and increased their target price for the stock from $7.00 to $10.00 in a report on Tuesday, April 22nd. Finally, Susquehanna reduced their target price 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. One investment analyst has rated the stock with a sell rating, four have given a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $11.36.

PagSeguro Digital Stock Down 5.2%

The stock has a market cap of $2.95 billion, a price-to-earnings ratio of 7.33, a PEG ratio of 0.61 and a beta of 1.57. The business's 50 day simple moving average is $8.74 and its 200 day simple moving average is $8.49.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 19th. The company reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.05. PagSeguro Digital had a net margin of 11.15% and a return on equity of 15.43%. Equities research analysts forecast that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current fiscal year.

PagSeguro Digital Cuts Dividend

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

Institutional Trading of PagSeguro Digital

A number of large investors have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of PagSeguro Digital by 626.4% during the 1st 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 during the last quarter. Aurora Investment Counsel lifted its stake in shares of PagSeguro Digital by 19.1% during the 1st quarter. Aurora Investment Counsel now owns 247,732 shares of the company's stock worth $1,890,000 after buying an additional 39,697 shares during the last quarter. Harbor Capital Advisors Inc. lifted its stake in shares of PagSeguro Digital by 166.9% during the 1st quarter. Harbor Capital Advisors Inc. now owns 6,685 shares of the company's stock worth $51,000 after buying an additional 4,180 shares during the last quarter. SG Americas Securities LLC acquired a new stake in shares of PagSeguro Digital during the 1st quarter worth about $329,000. Finally, Ameriprise Financial Inc. lifted its stake in shares of PagSeguro Digital by 3,375.8% during the 4th quarter. Ameriprise Financial Inc. now owns 698,645 shares of the company's stock worth $4,374,000 after buying an additional 678,545 shares during the last quarter. Institutional investors and hedge funds own 45.88% of the company's stock.

PagSeguro Digital Company Profile

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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