PagSeguro Digital (NYSE:PAGS) Reaches New 52-Week Low – Should You Sell?

PagSeguro Digital Ltd. (NYSE:PAGS)’s stock price reached a new 52-week low on Thursday . The stock traded as low as $7.87 and last traded at $7.91, with a volume of 1236339 shares trading hands. The stock had previously closed at $8.09.

Wall Street Analysts Forecast Growth

PAGS has been the subject of several research reports. Morgan Stanley reissued an “underweight” rating and issued a $6.50 price objective (down previously from $14.00) on shares of PagSeguro Digital in a research note on Thursday, September 5th. The Goldman Sachs Group dropped their price target on PagSeguro Digital from $14.00 to $12.00 and set a “buy” rating for the company in a research note on Friday. Cantor Fitzgerald upgraded PagSeguro Digital to a “strong-buy” rating in a research report on Thursday, October 3rd. Barclays dropped their target price on PagSeguro Digital from $16.00 to $13.00 and set an “overweight” rating for the company in a research report on Tuesday, October 15th. Finally, Itau BBA Securities lowered PagSeguro Digital from an “outperform” rating to a “market perform” rating and set a $12.00 price target on the stock. in a research note on Tuesday, October 1st. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, PagSeguro Digital presently has an average rating of “Moderate Buy” and a consensus target price of $14.20.

PagSeguro Digital Stock Down 2.2 %

The firm has a market capitalization of $2.52 billion, a P/E ratio of 6.54, a price-to-earnings-growth ratio of 0.42 and a beta of 1.95. The company’s 50 day moving average is $8.50 and its 200-day moving average is $10.94.

PagSeguro Digital (NYSE:PAGS) last released its quarterly earnings data on Tuesday, August 20th. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.31 by $0.01. PagSeguro Digital had a return on equity of 14.97% and a net margin of 10.93%. The firm had revenue of $874.38 million during the quarter, compared to the consensus estimate of $816.34 million. During the same quarter in the previous year, the company posted $0.26 earnings per share. On average, analysts predict that PagSeguro Digital Ltd. will post 1.19 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Headlands Technologies LLC bought a new position in shares of PagSeguro Digital in the 1st quarter worth approximately $30,000. Y.D. More Investments Ltd boosted its stake in PagSeguro Digital by 82.5% during the second quarter. Y.D. More Investments Ltd now owns 3,983 shares of the company’s stock worth $47,000 after acquiring an additional 1,800 shares in the last quarter. Family Firm Inc. purchased a new stake in PagSeguro Digital in the second quarter worth about $50,000. Covestor Ltd increased its stake in shares of PagSeguro Digital by 11,990.2% during the first quarter. Covestor Ltd now owns 4,957 shares of the company’s stock valued at $71,000 after purchasing an additional 4,916 shares in the last quarter. Finally, Quarry LP lifted its holdings in shares of PagSeguro Digital by 156.2% during the second quarter. Quarry LP now owns 6,242 shares of the company’s stock valued at $73,000 after purchasing an additional 3,806 shares during the last quarter. Institutional investors own 45.88% of the company’s stock.

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.