PagSeguro Digital (NYSE:PAGS) Shares Gap Up Following Analyst Upgrade

Key Points

• PagSeguro Digital shares gapped up to $10.98 after Bank of America upgraded the stock from a neutral to a buy rating, with a new price target of $13.00.
• In recent reports, analysts have a consensus rating of Moderate Buy for PagSeguro Digital, with an average target price of $12.29.
• The company reported earnings of $0.34 per share, exceeding expectations, and announced a dividend of $0.12 per share to be paid on November 3rd.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) gapped up before the market opened on Friday after Bank of America upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $10.64, but opened at $10.98. Bank of America now has a $13.00 price target on the stock, up from their previous price target of $10.00. PagSeguro Digital shares last traded at $10.66, with a volume of 2,226,107 shares trading hands.

Other equities analysts have also recently issued reports about the company. Wall Street Zen raised PagSeguro Digital from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 13th. JPMorgan Chase & Co. raised 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. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, PagSeguro Digital has an average rating of "Moderate Buy" and a consensus price target of $12.29.

Hedge Funds Weigh In On PagSeguro Digital

Large investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. bought a new stake in PagSeguro Digital in the 1st quarter worth about $26,000. GAMMA Investing LLC lifted its position in PagSeguro Digital by 61.2% during the second quarter. GAMMA Investing LLC now owns 3,510 shares of the company's stock valued at $34,000 after purchasing an additional 1,333 shares during the period. CWM LLC lifted its position in PagSeguro Digital by 78.1% during the second quarter. CWM LLC now owns 4,073 shares of the company's stock valued at $39,000 after purchasing an additional 1,786 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in PagSeguro Digital by 626.4% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,143 shares of the company's stock valued at $39,000 after purchasing an additional 4,435 shares during the period. Finally, Virtus Advisers LLC purchased a new stake in PagSeguro Digital during the 2nd quarter valued at $51,000. Hedge funds and other institutional investors own 45.88% of the company's stock.

PagSeguro Digital Trading Up 1.9%

The firm has a market capitalization of $3.43 billion, a PE ratio of 8.40, a price-to-earnings-growth ratio of 0.69 and a beta of 1.56. The business's 50 day simple moving average is $8.83 and its two-hundred day simple moving average is $8.82.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.31 by $0.03. PagSeguro Digital had a return on equity of 15.52% and a net margin of 11.04%.The company had revenue of $930.17 million during the quarter, compared to analyst estimates of $901.10 million. As a group, equities research analysts anticipate that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current year.

PagSeguro Digital Cuts Dividend

The firm also recently disclosed a -- dividend, which will be paid on Monday, November 3rd. Stockholders of record on Monday, October 6th will be paid a $0.12 dividend. This represents a dividend yield of 150.0%. The ex-dividend date is Monday, October 6th. PagSeguro Digital's dividend payout ratio is 11.29%.

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.