PagSeguro Digital (NYSE:PAGS) Trading Down 7.2% After Earnings Miss

PagSeguro Digital Ltd. (NYSE:PAGS) shares were down 7.2% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $9.02 and last traded at $9.0750. Approximately 3,023,581 shares changed hands during trading, a decline of 22% from the average daily volume of 3,887,184 shares. The stock had previously closed at $9.78.

The company reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01). PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%. The business had revenue of $642.01 million during the quarter, compared to analysts’ expectations of $952.64 million.

PagSeguro Digital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, April 22nd will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, April 22nd. This represents a $1.04 dividend on an annualized basis and a yield of 11.6%. PagSeguro Digital’s dividend payout ratio is 81.25%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PAGS. Wall Street Zen raised shares of PagSeguro Digital from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. UBS Group lifted their price target on shares of PagSeguro Digital from $13.00 to $14.00 and gave the stock a “buy” rating in a research note on Wednesday, January 28th. JPMorgan Chase & Co. dropped their price target on shares of PagSeguro Digital from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Monday, April 13th. Autonomous Res cut shares of PagSeguro Digital from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 30th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of PagSeguro Digital in a research note on Friday. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $12.00.

Insiders Place Their Bets

In other PagSeguro Digital news, Director Alexandre Mr Magnani sold 200,000 shares of the firm’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $11.26, for a total transaction of $2,252,000.00. Following the transaction, the director owned 607,390 shares of the company’s stock, valued at approximately $6,839,211.40. This trade represents a 24.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Luis Frias bought 498,500 shares of the business’s stock in a transaction on Friday, March 27th. The shares were acquired at an average cost of $9.96 per share, for a total transaction of $4,965,060.00. Following the transaction, the director directly owned 2,673,605 shares in the company, valued at approximately $26,629,105.80. This trade represents a 22.92% increase in their position. The SEC filing for this purchase provides additional information.

Institutional Investors Weigh In On PagSeguro Digital

Institutional investors have recently bought and sold shares of the company. Meeder Asset Management Inc. increased its position in shares of PagSeguro Digital by 86.7% during the first quarter. Meeder Asset Management Inc. now owns 10,308 shares of the company’s stock worth $103,000 after purchasing an additional 4,786 shares in the last quarter. SEB Asset Management AB acquired a new position in shares of PagSeguro Digital during the first quarter worth $2,827,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its position in PagSeguro Digital by 25.9% during the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 61,820 shares of the company’s stock valued at $619,000 after buying an additional 12,722 shares in the last quarter. Waterfront Wealth Inc. increased its position in PagSeguro Digital by 6.3% during the 1st quarter. Waterfront Wealth Inc. now owns 359,592 shares of the company’s stock valued at $3,603,000 after buying an additional 21,156 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC acquired a new position in PagSeguro Digital during the 1st quarter valued at about $566,000. 45.88% of the stock is currently owned by institutional investors and hedge funds.

PagSeguro Digital Stock Down 8.3%

The firm has a market cap of $2.51 billion, a PE ratio of 7.01, a price-to-earnings-growth ratio of 0.39 and a beta of 1.37. The stock has a 50 day moving average price of $10.24 and a two-hundred day moving average price of $10.20.

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.