PagSeguro Digital (NYSE:PAGS) Shares Gap Up - Here's What Happened

Key Points

• PagSeguro Digital shares jumped: The stock opened at $10.30 after closing at $9.02 and last traded near $11.10, with more than 4.1 million shares changing hands.
• Analyst sentiment remains cautious: The company has a consensus “Hold” rating and an average price target of $10.73, despite two Buy ratings; Bank of America downgraded the stock to Neutral while UBS maintained a Buy rating with a reduced target.
• Dividend increased: PagSeguro raised its quarterly dividend to $0.28, equivalent to $1.12 annually and a 10.1% yield, though its payout ratio stands at 78.32%.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report)'s stock price gapped up prior to trading on Monday. The stock had previously closed at $9.02, but opened at $10.30. PagSeguro Digital shares last traded at $11.0960, with a volume of 4,159,389 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Bank of America downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price target on the stock. in a report on Wednesday, July 15th. UBS Group decreased their price objective on PagSeguro Digital from $12.50 to $11.00 and set a "buy" rating for the company in a research note on Tuesday, September 29th. Weiss Ratings reissued a "hold (c)" rating on shares of PagSeguro Digital in a research report on Friday, September 18th. Finally, Jefferies Financial Group started coverage on shares of PagSeguro Digital in a research note on Thursday, July 23rd. They set a "hold" rating and a $10.40 target price on the stock. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, PagSeguro Digital presently has a consensus rating of "Hold" and a consensus target price of $10.73.

PagSeguro Digital Stock Performance

The stock's 50-day moving average is $9.24 and its 200 day moving average is $9.46. The stock has a market capitalization of $3.09 billion, a PE ratio of 7.74, a P/E/G ratio of 0.36 and a beta of 1.27.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share for the quarter, beating analysts' consensus estimates 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%. Analysts expect that PagSeguro Digital Ltd. will post 1.65 earnings per share for the current year.

PagSeguro Digital Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were issued a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 10.1%. The ex-dividend date of this dividend was Wednesday, September 16th. This is an increase from PagSeguro Digital's previous quarterly dividend of $0.26. PagSeguro Digital's dividend payout ratio (DPR) is presently 78.32%.

Insider Activity

In related news, insider Silva Dutra sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $9.24, for a total transaction of $231,000.00. Following the transaction, the insider owned 25,000 shares in the company, valued at $231,000. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted its holdings in shares of PagSeguro Digital by 77.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,185 shares of the company's stock valued at $40,000 after acquiring an additional 1,821 shares during the period. Meeder Asset Management Inc. boosted its stake in PagSeguro Digital by 86.7% during the 1st quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company's stock worth $103,000 after purchasing an additional 4,786 shares during the period. Confluence Investment Management LLC acquired a new stake in PagSeguro Digital during the 2nd quarter worth $125,000. DGS Capital Management LLC grew its position in PagSeguro Digital by 8.7% during the 4th quarter. DGS Capital Management LLC now owns 15,814 shares of the company's stock worth $152,000 after purchasing an additional 1,271 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in PagSeguro Digital during the 2nd quarter worth $156,000. Institutional investors and hedge funds own 45.88% of the company's stock.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazilian financial technology company that operates the PagBank ecosystem. The company provides payment acceptance and digital banking services primarily to micro, small and medium-sized businesses, self-employed professionals and individual consumers in Brazil.

Its products and services include point-of-sale payment terminals, online payment processing, digital accounts, payment cards, money transfers, bill payment and other financial services. PagSeguro also offers tools designed to help merchants manage transactions and business finances through digital platforms and mobile applications.

PagSeguro was developed as part of Brazil's UOL group and became a publicly traded company on the New York Stock Exchange in 2018.

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