PagSeguro Digital (NYSE:PAGS) Reaches New 1-Year Low Following Insider Selling

PagSeguro Digital Ltd. (NYSE:PAGS)’s share price reached a new 52-week low during trading on Monday following insider selling activity. The company traded as low as $7.48 and last traded at $7.64, with a volume of 1,383,029 shares. The stock had previously closed at $11.44.

Specifically, Director Alexandre Magnani sold 27,294 shares of the company’s stock in a transaction that occurred on Friday, October 23rd. The stock was sold at an average price of $11.43, for a total value of $311,970.42. Following the sale, the director owned 57,390 shares in the company, valued at $655,967.70. This represents a 32.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Alexandre Magnani sold 22,706 shares of the business’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 directly owned 84,684 shares in the company, valued at $956,929.20. The trade was a 21.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In related 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 value of $528,462.00. Following the sale, the director owned 107,390 shares in the company, valued at approximately $1,204,915.80. This represents a 30.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

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

PagSeguro Digital News Roundup

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 Price Performance

The firm has a 50-day moving average price of $9.75 and a 200 day moving average price of $9.84.

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

PagSeguro Digital Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were issued a dividend of $0.28 per share. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 13.3%. The ex-dividend date of this dividend was Wednesday, September 16th.

Institutional Investors Weigh In On PagSeguro Digital

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Lazard Asset Management LLC grew its stake in shares of PagSeguro Digital by 101.7% in the first quarter. Lazard Asset Management LLC now owns 1,986,771 shares of the company’s stock valued at $19,907,000 after acquiring an additional 1,001,581 shares in the last quarter. Absolute Gestao de Investimentos Ltda. raised its stake in PagSeguro Digital by 224.2% in the 1st quarter. Absolute Gestao de Investimentos Ltda. now owns 1,175,125 shares of the company’s stock worth $11,775,000 after purchasing an additional 812,641 shares in the last quarter. Sei Investments Co. raised its stake in PagSeguro Digital by 168.5% in the 1st quarter. Sei Investments Co. now owns 611,057 shares of the company’s stock worth $6,123,000 after purchasing an additional 383,452 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in PagSeguro Digital in the 2nd quarter worth about $4,407,000. Finally, Bank of America Corp DE boosted its holdings in PagSeguro Digital by 15.4% in the 1st quarter. Bank of America Corp DE now owns 479,554 shares of the company’s stock valued at $4,805,000 after purchasing an additional 63,981 shares during the period. 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.