PagSeguro Digital (NYSE:PAGS) Reaches New 1-Year Low - What's Next?

Key Points

• PagSeguro Digital shares hit a new 52-week low, falling to $7.48 from a prior close of $11.44. The stock’s market capitalization was approximately $2.35 billion.
• Analysts maintain a consensus “Hold” rating with an average price target of $11.08; UBS retained a Buy rating while Bank of America downgraded the stock to Neutral.
• The company reported quarterly EPS of $0.41, slightly above estimates, but revenue came in below expectations. PagSeguro also raised its quarterly dividend to $0.28 per share, while insiders sold 500,000 shares over the past three months.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report) reached a new 52-week low on Monday. The stock traded as low as $7.48 and last traded at $7.64, with a volume of 1,383,029 shares changing hands. The stock had previously closed at $11.44.

Analyst Upgrades and Downgrades

PAGS has been the topic of several research reports. UBS Group reduced their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating on the stock in a research report on Tuesday, September 29th. Bank of America cut shares of PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective on the stock. in a research report on Wednesday, July 15th. Jefferies Financial Group initiated coverage on shares of PagSeguro Digital in a research report on Thursday, July 23rd. They issued a "hold" rating and a $10.40 price objective on the stock. Finally, Weiss Ratings upgraded shares of PagSeguro Digital from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, October 13th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $11.08.

PagSeguro Digital Price Performance

The stock has a 50 day simple moving average of $9.78 and a two-hundred day simple moving average of $9.58. The company has a market capitalization of $2.35 billion, a price-to-earnings ratio of 5.94, a PEG ratio of 0.46 and a beta of 1.27.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. The firm had revenue of $942.97 million during the quarter, compared to analysts' expectations of $1 billion. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. Equities research analysts predict that PagSeguro Digital Ltd. will post 1.65 EPS for the current year.

PagSeguro Digital Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 13.3%. The ex-dividend date was Wednesday, September 16th. This is a positive change from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's payout ratio is currently 78.32%.

Insiders Place Their Bets

In other PagSeguro Digital 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 value of $3,285,000.00. Following the transaction, the director owned 207,390 shares in the company, valued at $2,270,920.50. The trade was a 59.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In the last three months, insiders sold 500,000 shares of company stock valued at $5,465,598.

Institutional Investors Weigh In On PagSeguro Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Signaturefd LLC increased its stake in shares of PagSeguro Digital by 83.9% during the 3rd quarter. Signaturefd LLC now owns 11,121 shares of the company's stock worth $99,000 after purchasing an additional 5,074 shares during the last quarter. SBI Securities Co. Ltd. lifted 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 worth $40,000 after purchasing an additional 1,233 shares during the last quarter. Nisa Investment Advisors LLC increased its position in PagSeguro Digital by 849.1% during the third quarter. Nisa Investment Advisors LLC now owns 21,536 shares of the company's stock worth $192,000 after acquiring an additional 19,267 shares during the period. CWA Asset Management Group LLC grew its position in PagSeguro Digital by 62.4% during the third quarter. CWA Asset Management Group LLC now owns 223,004 shares of the company's stock worth $1,985,000 after buying an additional 85,644 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new position in shares of PagSeguro Digital during the 2nd quarter worth about $172,000. Hedge funds and other institutional investors own 45.88% of the company's stock.

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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