PagSeguro Digital (NYSE:PAGS) Shares Gap Up After Earnings Beat

PagSeguro Digital Ltd. (NYSE:PAGS) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $8.16, but opened at $8.53. PagSeguro Digital shares last traded at $8.27, with a volume of 2,399,801 shares traded.

The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.05. PagSeguro Digital had a return on equity of 15.49% and a net margin of 11.12%.

Analysts Set New Price Targets

PAGS has been the topic of a number of research reports. JPMorgan Chase & Co. lowered their price objective on PagSeguro Digital from $16.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, December 16th. KeyCorp raised shares of PagSeguro Digital to a “hold” rating in a report on Friday, November 15th. The Goldman Sachs Group lowered their price target on shares of PagSeguro Digital from $14.00 to $12.00 and set a “buy” rating on the stock in a report on Friday, November 15th. Susquehanna lowered their price target on shares of PagSeguro Digital from $19.00 to $16.00 and set a “positive” rating on the stock in a report on Monday, November 18th. Finally, Bank of America reissued a “neutral” rating on shares of PagSeguro Digital in a report on Tuesday, December 10th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, PagSeguro Digital has a consensus rating of “Moderate Buy” and a consensus price target of $13.18.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Signaturefd LLC increased its position in shares of PagSeguro Digital by 1,306.5% in the fourth quarter. Signaturefd LLC now owns 4,557 shares of the company’s stock worth $29,000 after purchasing an additional 4,233 shares during the last quarter. State of Wyoming increased its position in shares of PagSeguro Digital by 32.8% in the fourth quarter. State of Wyoming now owns 6,436 shares of the company’s stock worth $40,000 after purchasing an additional 1,591 shares during the last quarter. GW Henssler & Associates Ltd. bought a new position in shares of PagSeguro Digital in the third quarter worth approximately $87,000. Advisory Services Network LLC bought a new position in shares of PagSeguro Digital in the fourth quarter worth approximately $66,000. Finally, Point72 Hong Kong Ltd increased its position in shares of PagSeguro Digital by 34.6% in the third quarter. Point72 Hong Kong Ltd now owns 10,767 shares of the company’s stock worth $93,000 after purchasing an additional 2,767 shares during the last quarter. 45.88% of the stock is currently owned by institutional investors.

PagSeguro Digital Stock Down 1.5 %

The company’s 50-day moving average is $6.96 and its two-hundred day moving average is $8.40. The company has a market capitalization of $2.65 billion, a P/E ratio of 6.64, a PEG ratio of 0.50 and a beta of 1.95.

PagSeguro Digital Company Profile

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.