PagSeguro Digital (NYSE:PAGS) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen has upgraded PagSeguro Digital (NYSE:PAGS) from a "buy" rating to a "strong-buy" rating, indicating increased investor confidence in the company.
• JPMorgan Chase & Co. raised their price objective for PagSeguro Digital shares from $12.00 to $13.00, while maintaining a "neutral" rating on the stock.
• PagSeguro Digital reported earnings of $0.34 EPS for the last quarter, exceeding expectations, with quarterly revenue of $930.17 million compared to predictions of $901.10 million.

Wall Street Zen upgraded shares of PagSeguro Digital (NYSE:PAGS - Free Report) from a buy rating to a strong-buy rating in a research report released on Saturday.

Separately, JPMorgan Chase & Co. boosted their target price on shares of PagSeguro Digital from $12.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $12.17.

PagSeguro Digital Stock Performance

NYSE PAGS remained flat at $10.64 during mid-day trading on Friday. 4,911,419 shares of the company were exchanged, compared to its average volume of 4,795,241. PagSeguro Digital has a 52 week low of $6.11 and a 52 week high of $10.84. The firm has a market cap of $3.51 billion, a PE ratio of 8.58, a PEG ratio of 0.70 and a beta of 1.57. The business's 50-day moving average price is $8.76 and its two-hundred day moving average price is $8.76.

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

PagSeguro Digital Cuts Dividend

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

Institutional Investors Weigh In On PagSeguro Digital

Several hedge funds and other institutional investors have recently modified their holdings of PAGS. Nuveen LLC purchased a new stake in shares of PagSeguro Digital in the 1st quarter worth $59,603,000. Millennium Management LLC increased its stake in shares of PagSeguro Digital by 870.4% in the 4th quarter. Millennium Management LLC now owns 6,271,376 shares of the company's stock worth $39,259,000 after purchasing an additional 5,625,121 shares in the last quarter. Sylebra Capital LLC increased its stake in shares of PagSeguro Digital by 53.0% in the 4th quarter. Sylebra Capital LLC now owns 12,143,691 shares of the company's stock worth $76,020,000 after purchasing an additional 4,208,192 shares in the last quarter. Baupost Group LLC MA purchased a new stake in shares of PagSeguro Digital in the 2nd quarter worth $24,100,000. Finally, Orbis Allan Gray Ltd purchased a new stake in shares of PagSeguro Digital in the 2nd quarter worth $20,106,000. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Company Profile

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.