PagSeguro Digital (NYSE:PAGS) Shares Gap Up After Strong Earnings

Shares of PagSeguro Digital Ltd. (NYSE:PAGS) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $8.16, but opened at $8.53. PagSeguro Digital shares last traded at $8.27, with a volume of 2,399,801 shares.

The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.05. PagSeguro Digital had a net margin of 11.12% and a return on equity of 15.49%.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. JPMorgan Chase & Co. dropped their price objective on PagSeguro Digital from $16.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, December 16th. Bank of America reiterated a “neutral” rating on shares of PagSeguro Digital in a report on Tuesday, December 10th. Citigroup restated a “neutral” rating and set a $7.00 target price (down from $17.00) on shares of PagSeguro Digital in a report on Thursday, January 16th. Susquehanna reduced their price target on shares of PagSeguro Digital from $19.00 to $16.00 and set a “positive” rating for the company in a report on Monday, November 18th. Finally, The Goldman Sachs Group dropped their price objective on shares of PagSeguro Digital from $14.00 to $12.00 and set a “buy” rating on the stock in a report on Friday, November 15th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.18.

Hedge Funds Weigh In On PagSeguro Digital

Hedge funds and other institutional investors have recently bought and sold shares of the business. Signaturefd LLC boosted its holdings in shares of PagSeguro Digital by 1,306.5% during the 4th quarter. Signaturefd LLC now owns 4,557 shares of the company’s stock worth $29,000 after buying an additional 4,233 shares during the period. State of Wyoming grew its position in shares of PagSeguro Digital by 32.8% in the fourth quarter. State of Wyoming now owns 6,436 shares of the company’s stock valued at $40,000 after purchasing an additional 1,591 shares during the last quarter. Advisory Services Network LLC bought a new position in shares of PagSeguro Digital during the fourth quarter worth approximately $66,000. Raymond James Financial Inc. acquired a new stake in PagSeguro Digital during the 4th quarter worth approximately $79,000. Finally, GW Henssler & Associates Ltd. acquired a new stake in PagSeguro Digital during the 3rd quarter worth approximately $87,000. Institutional investors own 45.88% of the company’s stock.

PagSeguro Digital Trading Up 1.8 %

The company has a 50 day moving average of $6.94 and a 200-day moving average of $8.42. The firm has a market capitalization of $2.74 billion, a P/E ratio of 6.86, a P/E/G ratio of 0.50 and a beta of 1.95.

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.