PagSeguro Digital (NYSE:PAGS) Hits New 1-Year Low After Analyst Downgrade

Key Points

• PagSeguro Digital hit a new 52-week low after UBS downgraded the stock from Buy to Neutral and cut its price target from $13 to $8; shares traded as low as $7.48.
• Analyst sentiment is broadly cautious: the consensus rating is Hold, with an average price target of $10.07. One analyst rates it Buy, six Hold, and one Sell.
• Company director Alexandre Magnani sold 300,000 shares in October, and insiders sold 550,000 shares worth about $6 million over the prior 90 days. PagSeguro also raised its quarterly dividend to $0.28 per share.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) shares hit a new 52-week low on Thursday after UBS Group downgraded the stock from a buy rating to a neutral rating. UBS Group now has a $8.00 price target on the stock, down from their previous price target of $13.00. PagSeguro Digital traded as low as $7.48 and last traded at $7.6920, with a volume of 1,049,217 shares trading hands. The stock had previously closed at $7.92.

PAGS has been the topic of a number of other reports. Weiss Ratings downgraded PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday. Jefferies Financial Group started coverage on PagSeguro Digital in a report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 price objective for the company. Bank of America cut PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective for the company. in a research report on Wednesday, July 15th. Finally, Citigroup downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and lowered their target price for the company from $13.00 to $8.00 in a report on Tuesday, October 27th. One equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $10.07.

Insider Buying and Selling at PagSeguro Digital

In other news, Director Alexandre Magnani sold 300,000 shares of the business's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $10.95, for a total transaction of $3,285,000.00. Following the completion of the sale, the director owned 207,390 shares of the company's stock, valued at $2,270,920.50. The trade was a 59.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders have sold 550,000 shares of company stock worth $6,034,146.

Hedge Funds Weigh In On PagSeguro Digital

Several institutional investors and hedge funds have recently bought and sold shares of PAGS. SBI Securities Co. Ltd. raised its position in shares of PagSeguro Digital by 38.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 4,471 shares of the company's stock valued at $40,000 after purchasing an additional 1,233 shares during the period. First Trust Advisors LP boosted its holdings in PagSeguro Digital by 10.9% in the 1st quarter. First Trust Advisors LP now owns 18,678 shares of the company's stock worth $187,000 after buying an additional 1,835 shares during the period. Royal Bank of Canada boosted its holdings in PagSeguro Digital by 3.7% in the 1st quarter. Royal Bank of Canada now owns 56,092 shares of the company's stock worth $562,000 after buying an additional 1,998 shares during the period. Unison Advisors LLC boosted its holdings in PagSeguro Digital by 2.8% in the 3rd quarter. Unison Advisors LLC now owns 79,837 shares of the company's stock worth $711,000 after buying an additional 2,157 shares during the period. Finally, Amundi increased its stake in PagSeguro Digital by 6.0% in the 1st quarter. Amundi now owns 54,586 shares of the company's stock worth $547,000 after buying an additional 3,067 shares in the last quarter. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Trading Down 2.3%

The firm has a market cap of $2.17 billion, a PE ratio of 5.40, a price-to-earnings-growth ratio of 0.31 and a beta of 1.46. The stock has a 50 day simple moving average of $9.67 and a 200-day simple moving average of $9.77.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. The business had revenue of $942.97 million for the quarter, compared to the consensus estimate of $1 billion. On average, equities research analysts expect that PagSeguro Digital Ltd. will post 1.65 EPS for the current year.

PagSeguro Digital Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were issued a $0.28 dividend. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $1.12 dividend on an annualized basis and a yield of 14.5%. This is a boost from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's payout ratio is presently 78.32%.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment and banking services to small and medium-sized businesses, independent professionals, and consumers. The company is part of the Universo Online (UOL) group and serves customers primarily in Brazil.

PagSeguro offers point-of-sale payment terminals and mobile payment solutions that allow merchants to accept credit, debit, contactless, and other electronic payments.

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