PagSeguro Digital (NYSE:PAGS) Shares Gap Up – Time to Buy?

PagSeguro Digital Ltd. (NYSE:PAGS) shares gapped up before the market opened on Wednesday . The stock had previously closed at $7.89, but opened at $8.18. PagSeguro Digital shares last traded at $8.48, with a volume of 961,925 shares changing hands.

Analyst Ratings Changes

PAGS has been the topic of several recent analyst reports. JPMorgan Chase & Co. decreased their price objective on shares of PagSeguro Digital from $16.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, December 16th. Citigroup reaffirmed a “neutral” rating and set a $7.00 price objective (down from $17.00) on shares of PagSeguro Digital in a report on Thursday, January 16th. Finally, Bank of America reaffirmed a “neutral” rating on shares of PagSeguro Digital in a report on Tuesday, December 10th. One research analyst has rated the stock with a sell rating, five have given a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, PagSeguro Digital presently has an average rating of “Moderate Buy” and an average target price of $12.33.

PagSeguro Digital Stock Up 5.2 %

The firm has a market capitalization of $2.74 billion, a price-to-earnings ratio of 6.87, a PEG ratio of 0.51 and a beta of 2.04. The business’s 50-day simple moving average is $7.37 and its two-hundred day simple moving average is $7.77.

PagSeguro Digital (NYSE:PAGS) last announced its quarterly earnings results on Friday, February 21st. 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%. The business had revenue of $875.27 million during the quarter, compared to analysts’ expectations of $872.66 million. Sell-side analysts anticipate that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in PAGS. Principal Financial Group Inc. grew its holdings in shares of PagSeguro Digital by 23.8% in the third quarter. Principal Financial Group Inc. now owns 403,938 shares of the company’s stock valued at $3,478,000 after purchasing an additional 77,543 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of PagSeguro Digital in the third quarter valued at approximately $3,246,000. Empowered Funds LLC acquired a new position in shares of PagSeguro Digital in the third quarter valued at approximately $1,013,000. Intech Investment Management LLC acquired a new position in shares of PagSeguro Digital in the third quarter valued at approximately $741,000. Finally, Citigroup Inc. grew its holdings in shares of PagSeguro Digital by 587.0% in the third quarter. Citigroup Inc. now owns 1,052,166 shares of the company’s stock valued at $9,059,000 after purchasing an additional 899,010 shares in the last quarter. Institutional investors and hedge funds 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.