PagSeguro Digital (NYSE:PAGS) Reaches New 52-Week Low – Here’s Why

PagSeguro Digital Ltd. (NYSE:PAGS) reached a new 52-week low during trading on Monday. The company traded as low as $7.48 and last traded at $7.64, with a volume of 1,383,029 shares changing hands. The stock had previously closed at $11.44.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. 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 report on Wednesday, July 15th. Jefferies Financial Group assumed coverage on PagSeguro Digital in a report on Thursday, July 23rd. They issued a “hold” rating and a $10.40 price target on the stock. Weiss Ratings upgraded PagSeguro Digital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Finally, UBS Group lowered their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a “buy” rating on the stock in a research report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $11.08.

PagSeguro Digital Stock Down 26.6%

The stock has a market cap of $2.35 billion, a PE ratio of 5.94, a PEG ratio of 0.46 and a beta of 1.27. The business’s 50-day simple moving average is $9.78 and its 200-day simple moving average is $9.58.

PagSeguro Digital (NYSE:PAGS) last released its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. The firm had revenue of $942.97 million during the quarter, compared to analysts’ expectations of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. As a group, equities research analysts anticipate that PagSeguro Digital Ltd. will post 1.65 earnings per share for the current fiscal year.

PagSeguro Digital Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were given a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 13.3%. The ex-dividend date of this dividend was Wednesday, September 16th. This is a boost from PagSeguro Digital’s previous quarterly dividend of $0.26. PagSeguro Digital’s dividend payout ratio is currently 78.32%.

Insider Activity

In other PagSeguro Digital news, Director Alexandre Magnani sold 300,000 shares of the firm’s stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $10.95, for a total value of $3,285,000.00. Following the completion of the sale, the director owned 207,390 shares of the company’s stock, valued at approximately $2,270,920.50. This trade represents a 59.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders have sold 500,000 shares of company stock valued at $5,465,598.

Institutional Trading of PagSeguro Digital

A number of institutional investors and hedge funds have recently made changes to their positions in PAGS. SBI Securities Co. Ltd. raised its holdings in shares of PagSeguro Digital by 38.1% during the third quarter. SBI Securities Co. Ltd. now owns 4,471 shares of the company’s stock valued at $40,000 after acquiring an additional 1,233 shares during the last quarter. Signaturefd LLC boosted its holdings in shares of PagSeguro Digital by 83.9% during the 3rd quarter. Signaturefd LLC now owns 11,121 shares of the company’s stock worth $99,000 after purchasing an additional 5,074 shares during the last quarter. Meeder Asset Management Inc. grew its position in shares of PagSeguro Digital by 86.7% in the first quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company’s stock valued at $103,000 after purchasing an additional 4,786 shares in the last quarter. Confluence Investment Management LLC purchased a new position in PagSeguro Digital during the second quarter worth approximately $125,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in PagSeguro Digital in the 2nd quarter valued at $156,000. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment and banking services to small and medium-sized businesses, independent professionals, and consumers. The company is part of the Universo Online (UOL) group and serves customers primarily in Brazil.

PagSeguro offers point-of-sale payment terminals and mobile payment solutions that allow merchants to accept credit, debit, contactless, and other electronic payments.