PagSeguro Digital (NYSE:PAGS) Raised to Strong-Buy at 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 sent to investors on Saturday morning.

Separately, JPMorgan Chase & Co. boosted their price target on PagSeguro Digital from $12.00 to $13.00 and gave the company a "neutral" rating in a report on Wednesday, July 16th. One research 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's stock. According to data from MarketBeat, PagSeguro Digital has an average rating of "Moderate Buy" and an average price target of $12.17.

PagSeguro Digital Stock Performance

NYSE PAGS traded down $0.08 on Friday, hitting $10.66. 2,851,854 shares of the stock were exchanged, compared to its average volume of 5,104,373. PagSeguro Digital has a 52-week low of $6.11 and a 52-week high of $10.84. The firm has a market capitalization of $3.51 billion, a P/E ratio of 8.60, a P/E/G ratio of 0.64 and a beta of 1.57. The stock has a fifty day moving average price of $8.70 and a two-hundred day moving average price of $8.72.

PagSeguro Digital (NYSE:PAGS - Get Free Report) last issued its quarterly earnings results on Thursday, August 14th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.03. PagSeguro Digital had a return on equity of 15.52% and a net margin of 11.04%.The firm had revenue of $930.17 million for the quarter, compared to the consensus estimate of $901.10 million. Sell-side analysts expect that PagSeguro Digital will post 1.17 earnings per share for the current fiscal year.

PagSeguro Digital Cuts Dividend

The company also recently declared a -- dividend, which will be paid on Monday, November 3rd. Shareholders of record on Monday, October 6th will be given a dividend of $0.12 per share. This represents a dividend yield of 150.0%. The ex-dividend date of this dividend is Monday, October 6th. PagSeguro Digital's dividend payout ratio is presently 11.29%.

Institutional Investors Weigh In On PagSeguro Digital

Several institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC raised its stake in PagSeguro Digital by 61.2% in the 2nd quarter. GAMMA Investing LLC now owns 3,510 shares of the company's stock worth $34,000 after acquiring an additional 1,333 shares during the last quarter. Rhumbline Advisers increased its holdings in PagSeguro Digital by 0.5% in the second quarter. Rhumbline Advisers now owns 275,244 shares of the company's stock valued at $2,653,000 after buying an additional 1,367 shares in the last quarter. Waterfront Wealth Inc. raised its holdings in PagSeguro Digital by 0.5% in the 2nd quarter. Waterfront Wealth Inc. now owns 275,967 shares of the company's stock worth $2,660,000 after purchasing an additional 1,448 shares during the period. State of Wyoming raised its stake in shares of PagSeguro Digital by 32.8% during the 4th quarter. State of Wyoming now owns 6,436 shares of the company's stock worth $40,000 after buying an additional 1,591 shares during the period. Finally, CWM LLC lifted its holdings in PagSeguro Digital by 78.1% during the second quarter. CWM LLC now owns 4,073 shares of the company's stock valued at $39,000 after purchasing an additional 1,786 shares in the last quarter. 45.88% of the stock is currently owned by institutional investors and hedge funds.

About PagSeguro Digital

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.