PagSeguro Digital (NYSE:PAGS) Raised to "Buy" at Bank of America

Key Points

• PagSeguro Digital has been upgraded by Bank of America from a "neutral" to a "buy" rating, with a target price of $13.00, indicating a potential upside of 22.18% from its current stock price.
• Additionally, Wall Street Zen has raised its rating on PagSeguro to "strong-buy," further reflecting positive sentiment among analysts, with a consensus rating of "Moderate Buy."
• PagSeguro's recent quarterly earnings report revealed an earnings per share (EPS) of $0.34, surpassing expectations, and the company generated revenue of $930.17 million for the quarter.

Bank of America upgraded shares of PagSeguro Digital (NYSE:PAGS - Free Report) from a neutral rating to a buy rating in a research report sent to investors on Friday, MarketBeat.com reports. Bank of America currently has $13.00 price target on the stock, up from their prior price target of $10.00.

Several other brokerages also recently weighed in on PAGS. Wall Street Zen upgraded shares of PagSeguro Digital from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 13th. JPMorgan Chase & Co. lifted their price objective on shares of PagSeguro Digital from $12.00 to $13.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $12.29.

PagSeguro Digital Stock Performance

PAGS traded down $0.08 during trading on Friday, hitting $10.56. The stock had a trading volume of 10,752,115 shares, compared to its average volume of 4,836,621. The company has a market capitalization of $3.48 billion, a PE ratio of 8.52, a PEG ratio of 0.69 and a beta of 1.57. PagSeguro Digital has a twelve month low of $6.11 and a twelve month high of $11.16. The stock has a 50 day simple moving average of $8.80 and a two-hundred day simple moving average of $8.79.

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

PagSeguro Digital Cuts Dividend

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its holdings in PagSeguro Digital by 61.2% in the 2nd 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 last quarter. Rhumbline Advisers raised its stake in shares of PagSeguro Digital by 0.5% in the 2nd quarter. Rhumbline Advisers now owns 275,244 shares of the company's stock valued at $2,653,000 after acquiring an additional 1,367 shares during the period. Waterfront Wealth Inc. raised its stake in shares of PagSeguro Digital by 0.5% in the 2nd quarter. Waterfront Wealth Inc. now owns 275,967 shares of the company's stock valued at $2,660,000 after acquiring an additional 1,448 shares during the period. State of Wyoming raised its stake in shares of PagSeguro Digital by 32.8% in the 4th quarter. State of Wyoming now owns 6,436 shares of the company's stock valued at $40,000 after acquiring an additional 1,591 shares during the period. Finally, CWM LLC raised its stake in shares of PagSeguro Digital by 78.1% in the 2nd quarter. CWM LLC now owns 4,073 shares of the company's stock valued at $39,000 after acquiring an additional 1,786 shares during the period. 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.