PagSeguro Digital (NYSE:PAGS) Sets New 52-Week Low After Insider Selling

Shares of PagSeguro Digital Ltd. (NYSE:PAGS) hit a new 52-week low during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $7.48 and last traded at $7.64, with a volume of 1,383,029 shares changing hands. The stock had previously closed at $11.44.

Specifically, Director Alexandre Magnani sold 27,294 shares of PagSeguro Digital stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $11.43, for a total transaction of $311,970.42. Following the sale, the director directly owned 57,390 shares of the company’s stock, valued at approximately $655,967.70. The trade was a 32.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Alexandre Magnani sold 22,706 shares of the firm’s stock in a transaction that occurred on Thursday, October 22nd. The stock was sold at an average price of $11.30, for a total value of $256,577.80. Following the transaction, the director owned 84,684 shares of the company’s stock, valued at $956,929.20. This trade represents a 21.14% decrease in their position. The SEC filing for this sale provides additional information. In other PagSeguro Digital news, Director Alexandre Magnani sold 47,100 shares of the stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $11.22, for a total transaction of $528,462.00. Following the completion of the transaction, the director directly owned 107,390 shares in the company, valued at $1,204,915.80. This represents a 30.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Jefferies Financial Group started coverage on shares of PagSeguro Digital in a research note on Thursday, July 23rd. They issued a “hold” rating and a $10.40 target price for the company. UBS Group reduced their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a “buy” rating on the stock in a research report on Tuesday, September 29th. Bank of America downgraded shares of PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 target price for the company. in a research note on Wednesday, July 15th. Weiss Ratings raised shares of PagSeguro Digital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Finally, Citigroup lowered PagSeguro Digital from a “buy” rating to a “neutral” rating and cut their price target for the company from $13.00 to $8.00 in a research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $10.57.

Key PagSeguro Digital News

Here are the key news stories impacting PagSeguro Digital this week:

• Positive Sentiment: PagSeguro’s latest reported quarter showed adjusted EPS of $0.41, exceeding the $0.39 consensus estimate. Its 10.46% net margin and 16.36% return on equity support the view that profitability remains resilient. PagSeguro Digital Stock May Be Reasonable On Q2 Profitability Resilience
• Positive Sentiment: The stock screens as inexpensive, with a reported P/E ratio below 6, while the company recently increased its quarterly dividend. These factors may attract value- and income-oriented investors, although the dividend payout ratio is relatively high.
• Neutral Sentiment: PagSeguro’s revenue came in below analysts’ estimate, despite the EPS beat. Analysts expect approximately $1.65 in full-year EPS, and the broader consensus remains “Hold,” indicating limited agreement on near-term upside.
• Negative Sentiment: Citigroup downgraded PAGS from “Buy” to “Neutral” and reduced its price target from $13 to $8. The lower target reflects more cautious expectations and leaves little implied upside at recent trading levels. Citigroup Stock Recommendations
• Negative Sentiment: Brazilian political uncertainty is pressuring the stock after investors who expected Jair Bolsonaro to win reacted negatively to Luiz Inácio Lula da Silva’s reported election victory. Because PagSeguro generates most of its business in Brazil, changes in the country’s policy, currency and economic outlook can materially affect results. Why PagSeguro Stock Crashed Today
• Negative Sentiment: Director Alexandre Magnani disclosed multiple sales during October, including 22,706 shares and 27,294 shares, while reducing his holdings substantially. Repeated insider selling can weigh on sentiment even though it does not necessarily indicate a deterioration in the company’s fundamentals. PagSeguro Director Sells Shares

PagSeguro Digital Stock Down 1.9%

The stock’s 50 day simple moving average is $9.75 and its two-hundred day simple moving average is $9.84.

PagSeguro Digital (NYSE:PAGS) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.02. The firm had revenue of $942.97 million during the quarter, compared to analyst estimates of $1 billion. On average, equities research analysts expect that PagSeguro Digital Ltd. will post 1.65 EPS for the current year.

PagSeguro Digital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were paid a $0.28 dividend. This is a positive change from PagSeguro Digital’s previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a yield of 13.3%. The ex-dividend date was Wednesday, September 16th.

Institutional Investors Weigh In On PagSeguro Digital

Several large investors have recently made changes to their positions in PAGS. Public Employees Retirement System of Ohio acquired a new stake in PagSeguro Digital in the 2nd quarter worth about $1,507,000. Squarepoint Ops LLC grew its position in PagSeguro Digital by 108.7% during the second quarter. Squarepoint Ops LLC now owns 362,352 shares of the company’s stock worth $3,279,000 after buying an additional 188,748 shares in the last quarter. Bank of New York Mellon Corp bought a new position in PagSeguro Digital during the 2nd quarter worth $4,407,000. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in shares of PagSeguro Digital during the 1st quarter valued at $1,987,000. Finally, CWA Asset Management Group LLC grew its holdings in shares of PagSeguro Digital by 62.4% during the 3rd quarter. CWA Asset Management Group LLC now owns 223,004 shares of the company’s stock worth $1,985,000 after purchasing an additional 85,644 shares in the last quarter. Institutional investors and hedge funds own 45.88% of the company’s stock.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment and banking services to small and medium-sized businesses, independent professionals, and consumers. The company is part of the Universo Online (UOL) group and serves customers primarily in Brazil.

PagSeguro offers point-of-sale payment terminals and mobile payment solutions that allow merchants to accept credit, debit, contactless, and other electronic payments.