PagSeguro Digital (NYSE:PAGS) Shares Up 3.7% – Here’s Why

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on PAGS. Wall Street Zen lowered shares of PagSeguro Digital from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Bank of America lowered PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 target price on the stock. in a research report on Wednesday, July 15th. UBS Group reduced their target price on PagSeguro Digital from $14.00 to $12.50 and set a “buy” rating for the company in a report on Friday, July 17th. Jefferies Financial Group initiated coverage on PagSeguro Digital in a report on Thursday, July 23rd. They set a “hold” rating and a $10.40 price objective for the company. Finally, Weiss Ratings cut PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $10.98.

PagSeguro Digital Trading Up 7.8%

The company has a 50 day moving average of $9.12 and a 200 day moving average of $9.60. The firm has a market cap of $2.76 billion, a price-to-earnings ratio of 6.89, a price-to-earnings-growth ratio of 0.45 and a beta of 1.29.

PagSeguro Digital (NYSE:PAGS) last announced its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.02. The business 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%. As a group, sell-side analysts anticipate that PagSeguro Digital Ltd. will post 1.69 EPS for the current fiscal year.

PagSeguro Digital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be given a dividend of $0.28 per share. The ex-dividend date is Wednesday, September 16th. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 11.4%. PagSeguro Digital’s dividend payout ratio is presently 72.73%.

Insider Activity at PagSeguro Digital

In other news, insider Da Silva Ricardo Dutra sold 25,000 shares of PagSeguro Digital stock in a transaction that occurred 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 $231,000. The trade was a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd grew its position in shares of PagSeguro Digital by 77.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,185 shares of the company’s stock valued at $40,000 after purchasing an additional 1,821 shares during the period. Atlas Capital Advisors Inc. bought a new stake in shares of PagSeguro Digital in the 4th quarter valued at about $45,000. Meeder Asset Management Inc. bought a new stake in PagSeguro Digital in the fourth quarter valued at approximately $53,000. CWM LLC raised its stake in PagSeguro Digital by 50.4% in the 4th quarter. CWM LLC now owns 7,902 shares of the company’s stock valued at $76,000 after acquiring an additional 2,647 shares during the period. Finally, Osaic Holdings Inc. lifted its stake in shares of PagSeguro Digital by 93.4% during the 2nd quarter. Osaic Holdings Inc. now owns 7,891 shares of the company’s stock worth $76,000 after buying an additional 3,810 shares during the last quarter. Institutional investors and hedge funds own 45.88% of the company’s stock.

About PagSeguro Digital

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.