PagSeguro Digital (NYSE:PAGS) Shares Down 4.7% on Analyst Downgrade

PagSeguro Digital Ltd. (NYSE:PAGS)’s share price dropped 4.7% on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $16.00 to $11.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. PagSeguro Digital traded as low as $6.68 and last traded at $6.72. Approximately 2,857,297 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 4,230,828 shares. The stock had previously closed at $7.05.

Several other research firms have also recently issued reports on PAGS. Susquehanna cut their target price on PagSeguro Digital from $19.00 to $16.00 and set a “positive” rating on the stock in a research note on Monday, November 18th. The Goldman Sachs Group reduced their price target on PagSeguro Digital from $14.00 to $12.00 and set a “buy” rating on the stock in a research note on Friday, November 15th. Morgan Stanley restated an “underweight” rating and set a $6.50 target price (down previously from $14.00) on shares of PagSeguro Digital in a report on Thursday, September 5th. KeyCorp raised shares of PagSeguro Digital to a “hold” rating in a research note on Friday, November 15th. Finally, Barclays lowered their target price on shares of PagSeguro Digital from $16.00 to $13.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 15th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $14.00.

Institutional Trading of PagSeguro Digital

Institutional investors and hedge funds have recently modified their holdings of the stock. Marshall Wace LLP grew its holdings 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 buying an additional 2,497,968 shares during the last quarter. State Street Corp boosted its stake in shares of PagSeguro Digital by 50.8% during the 3rd quarter. State Street Corp now owns 5,908,054 shares of the company’s stock worth $50,868,000 after acquiring an additional 1,990,849 shares in the last quarter. Robeco Institutional Asset Management B.V. lifted its stake in PagSeguro Digital by 26.4% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 5,478,310 shares of the company’s stock valued at $47,168,000 after buying an additional 1,144,590 shares in the last quarter. SPX Gestao de Recursos Ltda purchased a new position in PagSeguro Digital in the 3rd quarter valued at about $38,151,000. Finally, Millennium Management LLC lifted its stake in PagSeguro Digital by 115.1% in the 2nd quarter. Millennium Management LLC now owns 3,813,901 shares of the company’s stock valued at $44,585,000 after buying an additional 2,040,704 shares in the last quarter. Institutional investors own 45.88% of the company’s stock.

PagSeguro Digital Stock Performance

The stock’s 50 day simple moving average is $7.92 and its two-hundred day simple moving average is $10.20. The firm has a market capitalization of $2.21 billion, a PE ratio of 5.60, a price-to-earnings-growth ratio of 0.44 and a beta of 1.92.

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.