PagSeguro Digital (NYSE:PAGS) Trading Up 3.7% - What's Next?

Key Points

• PagSeguro Digital shares rose 3.7% to about $9.35, although trading volume was roughly 97% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $10.98, despite UBS maintaining a Buy rating with a reduced $12.50 target.
• The company beat quarterly EPS expectations, reporting $0.41 versus $0.39 anticipated, while revenue fell short of estimates. PagSeguro also raised its quarterly dividend to $0.28, implying a 12.2% annualized yield.

PagSeguro Digital Ltd. (NYSE:PAGS - Get Free Report)'s stock price shot up 3.7% on Tuesday . The company traded as high as $9.12 and last traded at $9.3520. 119,976 shares were traded during mid-day trading, a decline of 97% from the average daily volume of 3,548,993 shares. The stock had previously closed at $9.02.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on PAGS shares. Wall Street Zen downgraded shares of PagSeguro Digital from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. UBS Group reduced their target price on shares of PagSeguro Digital from $14.00 to $12.50 and set a "buy" rating on the stock in a research report on Friday, July 17th. Weiss Ratings lowered shares of PagSeguro Digital from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Jefferies Financial Group began 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 for the company. Finally, Bank of America downgraded PagSeguro Digital from a "buy" rating to a "neutral" rating and set a $10.00 price objective on the stock. in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $10.98.

PagSeguro Digital Trading Up 1.7%

The stock has a market capitalization of $2.57 billion, a P/E ratio of 6.42, a PEG ratio of 0.44 and a beta of 1.31. The company has a fifty day simple moving average of $9.09 and a two-hundred day simple moving average of $9.62.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.02. The company had revenue of $942.97 million for the quarter, compared to analyst estimates of $1 billion. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. As a group, analysts forecast that PagSeguro Digital Ltd. will post 1.69 earnings per share for the current fiscal year.

PagSeguro Digital Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is a boost from PagSeguro Digital's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a yield of 12.2%. PagSeguro Digital's payout ratio is 72.73%.

Insider Buying and Selling

In other PagSeguro Digital news, insider Da Silva Ricardo Dutra sold 25,000 shares of the company's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $9.24, for a total transaction of $231,000.00. Following the completion of the sale, the insider owned 25,000 shares in the company, valued at approximately $231,000. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LP acquired a new stake in shares of PagSeguro Digital during the second quarter worth $278,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in PagSeguro Digital in the second quarter valued at about $156,000. California State Teachers Retirement System boosted its holdings in PagSeguro Digital by 114.5% during the second quarter. California State Teachers Retirement System now owns 20,806 shares of the company's stock worth $188,000 after buying an additional 11,105 shares during the last quarter. AlphaGrep UK Ltd bought a new position in PagSeguro Digital during the second quarter worth about $169,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of PagSeguro Digital during the 2nd quarter worth about $1,507,000. 45.88% of the stock is currently owned by institutional investors.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company's product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.

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