Morgan Stanley Reaffirms Underweight Rating for PagSeguro Digital (NYSE:PAGS)

Morgan Stanley restated their underweight rating on shares of PagSeguro Digital (NYSE:PAGS) in a report released on Thursday, Marketbeat.com reports. They currently have a $6.50 price target on the stock, down from their previous price target of $14.00.

Several other equities research analysts have also commented on PAGS. UBS Group reduced their price objective on PagSeguro Digital from $16.50 to $15.50 and set a buy rating for the company in a research note on Monday, July 8th. Barclays reduced their price target on PagSeguro Digital from $18.00 to $16.00 and set an overweight rating for the company in a research report on Thursday, August 22nd. The Goldman Sachs Group raised PagSeguro Digital from a neutral rating to a buy rating and set a $15.00 price objective on the stock in a research report on Wednesday, June 26th. Finally, JPMorgan Chase & Co. increased their target price on shares of PagSeguro Digital from $14.00 to $15.00 and gave the stock a neutral rating in a report on Monday, June 17th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and seven have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of Moderate Buy and an average price target of $15.11.

PagSeguro Digital Stock Performance

PAGS stock opened at $9.40 on Thursday. The company has a market cap of $3.10 billion, a price-to-earnings ratio of 8.47, a P/E/G ratio of 0.56 and a beta of 1.95. The business’s 50-day moving average is $12.35 and its two-hundred day moving average is $12.58. PagSeguro Digital has a fifty-two week low of $6.93 and a fifty-two week high of $14.98.

PagSeguro Digital (NYSE:PAGS) last issued its quarterly earnings data on Tuesday, August 20th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.01. The firm had revenue of $874.38 million for the quarter, compared to analysts’ expectations of $816.34 million. PagSeguro Digital had a net margin of 10.93% and a return on equity of 14.97%. During the same quarter in the prior year, the business earned $0.26 EPS. Equities analysts predict that PagSeguro Digital will post 1.2 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Point72 Asset Management L.P. lifted its holdings in shares of PagSeguro Digital by 9.0% in the fourth quarter. Point72 Asset Management L.P. now owns 10,924,410 shares of the company’s stock worth $136,227,000 after buying an additional 906,510 shares in the last quarter. Sylebra Capital LLC boosted its holdings in shares of PagSeguro Digital by 0.7% during the 1st quarter. Sylebra Capital LLC now owns 9,593,685 shares of the company’s stock valued at $136,998,000 after purchasing an additional 64,671 shares during the last quarter. Marshall Wace LLP grew its position in shares of PagSeguro Digital by 55.5% during the second quarter. Marshall Wace LLP now owns 6,994,870 shares of the company’s stock valued at $81,770,000 after purchasing an additional 2,497,968 shares in the last quarter. Norges Bank bought a new stake in shares of PagSeguro Digital in the fourth quarter worth about $54,522,000. Finally, Polunin Capital Partners Ltd boosted its stake in PagSeguro Digital by 12.3% during the first quarter. Polunin Capital Partners Ltd now owns 4,088,380 shares of the company’s stock valued at $58,382,000 after buying an additional 447,411 shares during the last quarter. 45.88% of the stock is currently owned by institutional investors.

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.