PagSeguro Digital (NYSE:PAGS) Trading Down 7.6% – Should You Sell?

Shares of PagSeguro Digital Ltd. (NYSE:PAGS) were down 7.6% on Thursday . The company traded as low as $9.21 and last traded at $9.3730. Approximately 2,140,154 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 4,353,043 shares. The stock had previously closed at $10.14.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on PAGS shares. Susquehanna boosted their price objective on shares of PagSeguro Digital from $11.00 to $12.00 and gave the stock a “positive” rating in a research report on Friday, November 14th. Wall Street Zen downgraded PagSeguro Digital from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. UBS Group increased their target price on PagSeguro Digital from $13.00 to $14.00 and gave the company a “buy” rating in a report on Wednesday, January 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of PagSeguro Digital in a report on Thursday, January 22nd. Five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $11.86.

PagSeguro Digital Price Performance

The firm has a market cap of $3.09 billion, a price-to-earnings ratio of 7.30, a price-to-earnings-growth ratio of 0.42 and a beta of 1.38. The business’s 50-day moving average price is $10.61 and its two-hundred day moving average price is $9.96.

PagSeguro Digital (NYSE:PAGS) last announced its earnings results on Wednesday, March 4th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.01. The firm had revenue of $991.79 million for the quarter, compared to analyst estimates of $1.03 billion. PagSeguro Digital had a net margin of 10.37% and a return on equity of 16.20%. As a group, sell-side analysts forecast that PagSeguro Digital Ltd. will post 1.17 earnings per share for the current year.

PagSeguro Digital Announces Dividend

The firm also recently announced a special dividend, which was paid on Friday, February 27th. Investors of record on Wednesday, January 28th were paid a $0.12 dividend. The ex-dividend date was Wednesday, January 28th. PagSeguro Digital’s dividend payout ratio is presently 10.94%.

Institutional Trading of PagSeguro Digital

A number of hedge funds have recently added to or reduced their stakes in PAGS. Robeco Institutional Asset Management B.V. increased its stake in shares of PagSeguro Digital by 108.2% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 6,610,914 shares of the company’s stock valued at $63,729,000 after acquiring an additional 3,435,211 shares during the last quarter. Maple Rock Capital Partners Inc. acquired a new stake in shares of PagSeguro Digital in the third quarter worth approximately $28,011,000. Baupost Group LLC MA purchased a new stake in PagSeguro Digital in the second quarter valued at approximately $24,100,000. Jacobs Levy Equity Management Inc. increased its position in PagSeguro Digital by 5,302.5% during the third quarter. Jacobs Levy Equity Management Inc. now owns 2,156,848 shares of the company’s stock worth $21,568,000 after purchasing an additional 2,116,925 shares during the last quarter. Finally, Orbis Allan Gray Ltd purchased a new position in PagSeguro Digital during the second quarter worth approximately $20,106,000. 45.88% of the stock is owned by institutional investors and hedge funds.

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.