PagSeguro Digital Sees Unusually High Options Volume (NYSE:PAGS)

PagSeguro Digital Ltd. (NYSE:PAGS) was the target of some unusual options trading on Thursday. Stock investors acquired 43,736 call options on the company. This represents an increase of approximately 3,118% compared to the average volume of 1,359 call options.

PagSeguro Digital Stock Performance

Shares of PAGS stock traded down $0.05 during trading hours on Thursday, hitting $12.43. The company had a trading volume of 761,861 shares, compared to its average volume of 3,009,835. PagSeguro Digital has a 12 month low of $6.93 and a 12 month high of $14.98. The firm has a market capitalization of $4.10 billion, a price-to-earnings ratio of 12.12, a PEG ratio of 0.61 and a beta of 1.82. The firm’s fifty day moving average is $13.02 and its 200 day moving average is $12.21.

PagSeguro Digital (NYSE:PAGS) last released its quarterly earnings results on Wednesday, February 28th. The company reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.04. The business had revenue of $877.60 million for the quarter, compared to analyst estimates of $786.91 million. PagSeguro Digital had a return on equity of 13.94% and a net margin of 10.37%. On average, sell-side analysts expect that PagSeguro Digital will post 1.29 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Sylebra Capital LLC lifted its holdings in PagSeguro Digital by 0.7% during the 1st quarter. Sylebra Capital LLC now owns 9,593,685 shares of the company’s stock worth $136,998,000 after buying an additional 64,671 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of PagSeguro Digital by 14.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 56,702 shares of the company’s stock valued at $810,000 after purchasing an additional 7,285 shares during the period. Absolute Gestao de Investimentos Ltda. acquired a new position in shares of PagSeguro Digital in the 1st quarter valued at $4,896,000. Truvestments Capital LLC acquired a new position in shares of PagSeguro Digital in the 1st quarter valued at $230,000. Finally, Covestor Ltd lifted its stake in shares of PagSeguro Digital by 11,990.2% in the 1st quarter. Covestor Ltd now owns 4,957 shares of the company’s stock valued at $71,000 after purchasing an additional 4,916 shares during the period. Institutional investors and hedge funds own 45.88% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Evercore ISI upgraded PagSeguro Digital from an “in-line” rating to an “outperform” rating and boosted their target price for the company from $12.00 to $18.00 in a research note on Tuesday, March 26th. Citigroup boosted their target price on PagSeguro Digital from $13.00 to $16.00 and gave the company a “buy” rating in a research note on Wednesday, March 20th. New Street Research upgraded PagSeguro Digital from a “neutral” rating to a “buy” rating and boosted their target price for the company from $15.00 to $18.00 in a research note on Monday, March 18th. Barclays boosted their target price on PagSeguro Digital from $17.00 to $18.00 and gave the company an “overweight” rating in a research note on Monday, April 29th. Finally, Cantor Fitzgerald boosted their target price on PagSeguro Digital from $14.00 to $16.00 and gave the company an “overweight” rating in a research note on Monday, March 4th. Two research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $15.20.

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.