Zacks Investment Research Lowers PagSeguro Digital (NYSE:PAGS) to Sell

PagSeguro Digital (NYSE:PAGS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports.

According to Zacks, “PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants and small and medium-sized businesses primarily in Brazil and internationally. The Company offers multiple digital payment solutions, in-person payments via point of sales devices and prepaid cards services. PagSeguro Digital Ltd. is headquartered in Sao Paulo, Brazil. “

Other equities research analysts have also recently issued research reports about the stock. ValuEngine cut shares of PagSeguro Digital from a “hold” rating to a “sell” rating in a report on Tuesday, October 29th. Deutsche Bank lifted their price target on shares of PagSeguro Digital from $40.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, August 6th. HSBC raised shares of PagSeguro Digital from a “hold” rating to a “buy” rating in a report on Monday, November 11th. KeyCorp lowered their target price on shares of PagSeguro Digital from $60.00 to $45.00 and set an “overweight” rating on the stock in a report on Wednesday, November 13th. Finally, Evercore ISI lowered their target price on shares of PagSeguro Digital from $65.00 to $56.00 and set an “outperform” rating on the stock in a report on Tuesday, October 15th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and nine have assigned a buy rating to the stock. PagSeguro Digital has a consensus rating of “Buy” and an average price target of $42.20.

NYSE:PAGS opened at $36.54 on Wednesday. The stock has a market capitalization of $11.96 billion, a PE ratio of 41.52, a price-to-earnings-growth ratio of 1.22 and a beta of 0.47. The firm’s 50 day moving average is $40.32 and its 200 day moving average is $40.45. PagSeguro Digital has a 12 month low of $17.02 and a 12 month high of $53.43.

PagSeguro Digital (NYSE:PAGS) last posted its quarterly earnings results on Thursday, August 15th. The company reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.01. The company had revenue of $354.49 million for the quarter, compared to analysts’ expectations of $332.31 million. PagSeguro Digital had a net margin of 23.12% and a return on equity of 18.82%. As a group, sell-side analysts anticipate that PagSeguro Digital will post 1.13 EPS for the current year.

Hedge funds have recently modified their holdings of the business. Commonwealth Equity Services LLC raised its holdings in PagSeguro Digital by 0.8% during the 2nd quarter. Commonwealth Equity Services LLC now owns 73,492 shares of the company’s stock valued at $2,863,000 after acquiring an additional 616 shares during the period. Schroder Investment Management Group raised its holdings in PagSeguro Digital by 1.5% during the 2nd quarter. Schroder Investment Management Group now owns 4,090,514 shares of the company’s stock valued at $159,407,000 after acquiring an additional 60,469 shares during the period. Chase Investment Counsel Corp bought a new stake in PagSeguro Digital during the 2nd quarter valued at $925,000. BNP Paribas Arbitrage SA bought a new stake in PagSeguro Digital during the 2nd quarter valued at $246,000. Finally, Advisor Group Inc. raised its holdings in PagSeguro Digital by 67.1% during the 2nd quarter. Advisor Group Inc. now owns 43,948 shares of the company’s stock valued at $1,713,000 after acquiring an additional 17,649 shares during the period. 53.72% of the stock is currently owned by institutional investors and hedge funds.

About PagSeguro Digital

PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, an end-to-end 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; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem.

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