Morgan Stanley Reaffirms Underweight Rating for PagSeguro Digital (NYSE:PAGS)

PagSeguro Digital (NYSE:PAGS)‘s stock had its “underweight” rating restated by research analysts at Morgan Stanley in a note issued to investors on Thursday, Benzinga reports. They presently have a $6.50 target price on the stock, down from their prior target price of $14.00. Morgan Stanley’s target price would indicate a potential downside of 38.68% from the company’s previous close.

Several other research firms also recently commented on PAGS. Barclays dropped their target price on PagSeguro Digital from $18.00 to $16.00 and set an “overweight” rating on the stock in a report on Thursday, August 22nd. The Goldman Sachs Group raised PagSeguro Digital from a “neutral” rating to a “buy” rating and set a $15.00 price target on the stock in a report on Wednesday, June 26th. JPMorgan Chase & Co. upped their price target on PagSeguro Digital from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Monday, June 17th. Finally, UBS Group lowered their price target on PagSeguro Digital from $16.50 to $15.50 and set a “buy” rating on the stock in a report on Monday, July 8th. One investment analyst has rated the stock with a sell rating, one has given a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $15.11.

PagSeguro Digital Trading Down 4.2 %

PagSeguro Digital stock opened at $10.60 on Thursday. The business’s fifty day simple moving average is $12.44 and its two-hundred day simple moving average is $12.62. PagSeguro Digital has a 12 month low of $6.93 and a 12 month high of $14.98. The company has a market capitalization of $3.49 billion, a price-to-earnings ratio of 9.55, a price-to-earnings-growth ratio of 0.56 and a beta of 1.95.

PagSeguro Digital (NYSE:PAGS) last released its earnings results on Tuesday, August 20th. The company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.31 by $0.01. PagSeguro Digital had a return on equity of 14.97% and a net margin of 10.93%. The business had revenue of $874.38 million for the quarter, compared to the consensus estimate of $816.34 million. During the same period in the previous year, the company posted $0.26 earnings per share. On average, equities research analysts predict that PagSeguro Digital will post 1.2 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Point72 Asset Management L.P. increased its position in PagSeguro Digital by 9.0% in the fourth quarter. Point72 Asset Management L.P. now owns 10,924,410 shares of the company’s stock worth $136,227,000 after buying an additional 906,510 shares in the last quarter. Sylebra Capital LLC increased its position in PagSeguro Digital by 0.7% in the first quarter. Sylebra Capital LLC now owns 9,593,685 shares of the company’s stock worth $136,998,000 after buying an additional 64,671 shares in the last quarter. Marshall Wace LLP increased its position in PagSeguro Digital by 55.5% in the second quarter. Marshall Wace LLP now owns 6,994,870 shares of the company’s stock worth $81,770,000 after buying an additional 2,497,968 shares in the last quarter. Norges Bank purchased a new stake in PagSeguro Digital in the fourth quarter worth about $54,522,000. Finally, Polunin Capital Partners Ltd increased its position in PagSeguro Digital by 12.3% in the first quarter. Polunin Capital Partners Ltd now owns 4,088,380 shares of the company’s stock worth $58,382,000 after buying an additional 447,411 shares in the last quarter. Institutional investors own 45.88% of the company’s stock.

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.