PagSeguro Digital (NYSE:PAGS) Shares Gap Down - Should You Sell?

Shares of PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $8.78, but opened at $8.60. PagSeguro Digital shares last traded at $8.57, with a volume of 1,750,434 shares trading hands.

Wall Street Analyst Weigh In

PAGS has been the subject of a number of analyst reports. Citigroup raised PagSeguro Digital from a "neutral" rating to a "buy" rating and boosted their price target for the company from $7.00 to $10.00 in a research note on Tuesday, April 22nd. Barclays dropped their price target on PagSeguro Digital from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Wednesday, April 23rd. Finally, Susquehanna dropped their price target on PagSeguro Digital from $16.00 to $14.00 and set a "positive" rating for the company in a research note on Wednesday, May 14th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $11.63.

PagSeguro Digital Stock Down 6.5%

The stock has a market cap of $2.81 billion, a price-to-earnings ratio of 7.04, a P/E/G ratio of 0.51 and a beta of 1.58. The company has a 50 day simple moving average of $9.00 and a 200 day simple moving average of $7.89.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its earnings results on Wednesday, May 14th. The company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.29 by $0.02. The firm had revenue of $857.50 million during the quarter, compared to the consensus estimate of $914.45 million. PagSeguro Digital had a return on equity of 15.49% and a net margin of 11.12%. As a group, analysts predict that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current fiscal year.

PagSeguro Digital Announces Dividend

The firm also recently announced a -- dividend, which was paid on Friday, June 6th. Shareholders of record on Friday, May 23rd were paid a dividend of $0.14 per share. The ex-dividend date was Friday, May 23rd. PagSeguro Digital's payout ratio is 11.48%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Principal Financial Group Inc. increased its stake in shares of PagSeguro Digital by 11.7% in the fourth quarter. Principal Financial Group Inc. now owns 451,110 shares of the company's stock valued at $2,824,000 after buying an additional 47,172 shares during the period. Ameriprise Financial Inc. increased its stake in shares of PagSeguro Digital by 3,375.8% in the fourth quarter. Ameriprise Financial Inc. now owns 698,645 shares of the company's stock valued at $4,374,000 after buying an additional 678,545 shares during the period. Barclays PLC increased its stake in shares of PagSeguro Digital by 240.0% in the third quarter. Barclays PLC now owns 270,215 shares of the company's stock valued at $2,327,000 after buying an additional 190,740 shares during the period. Sanctuary Advisors LLC increased its stake in shares of PagSeguro Digital by 28.5% in the fourth quarter. Sanctuary Advisors LLC now owns 25,422 shares of the company's stock valued at $159,000 after buying an additional 5,636 shares during the period. Finally, Virtu Financial LLC increased its stake in shares of PagSeguro Digital by 37.4% in the fourth quarter. Virtu Financial LLC now owns 15,672 shares of the company's stock valued at $98,000 after buying an additional 4,268 shares during the period. Institutional investors and hedge funds 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.