Investors Purchase Large Volume of PagSeguro Digital Put Options (NYSE:PAGS)

PagSeguro Digital Ltd. (NYSE:PAGS) saw some unusual options trading activity on Monday. Investors purchased 2,050 put options on the stock. This is an increase of approximately 32% compared to the typical volume of 1,555 put options.

PagSeguro Digital Stock Performance

NYSE PAGS traded down $0.27 during trading on Monday, reaching $8.86. 1,410,635 shares of the company’s stock were exchanged, compared to its average volume of 3,810,486. The stock has a market cap of $2.48 billion, a P/E ratio of 6.51, a price-to-earnings-growth ratio of 0.36 and a beta of 1.32. The company has a 50 day moving average price of $9.24 and a two-hundred day moving average price of $9.98. PagSeguro Digital has a 1 year low of $7.74 and a 1 year high of $12.32.

PagSeguro Digital (NYSE:PAGS) last released its quarterly earnings data on Wednesday, May 13th. The company reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01). PagSeguro Digital had a net margin of 10.40% and a return on equity of 16.44%. The business had revenue of $642.01 million during the quarter, compared to analysts’ expectations of $952.64 million. Research analysts forecast that PagSeguro Digital will post 1.7 EPS for the current fiscal year.

Analysts Set New Price Targets

PAGS has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. JPMorgan Chase & Co. decreased their price target on PagSeguro Digital from $13.00 to $12.00 and set a “neutral” rating on the stock in a research note on Monday, April 13th. Autonomous Res cut shares of PagSeguro Digital from a “hold” rating to a “strong sell” rating in a research report on Thursday, April 30th. Finally, Wall Street Zen cut PagSeguro Digital from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $12.00.

Insiders Place Their Bets

In related news, Director Alexandre Mr Magnani sold 200,000 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $11.26, for a total value of $2,252,000.00. Following the completion of the sale, the director owned 607,390 shares of the company’s stock, valued at approximately $6,839,211.40. This trade represents a 24.77% 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.

Hedge Funds Weigh In On PagSeguro Digital

Several hedge funds have recently added to or reduced their stakes in PAGS. Intech Investment Management LLC lifted its position in shares of PagSeguro Digital by 29.9% during the 1st quarter. Intech Investment Management LLC now owns 150,945 shares of the company’s stock worth $1,152,000 after buying an additional 34,787 shares during the last quarter. Hsbc Holdings PLC raised its stake in PagSeguro Digital by 41.9% during the 2nd quarter. Hsbc Holdings PLC now owns 44,955 shares of the company’s stock worth $433,000 after acquiring an additional 13,279 shares in the last quarter. Norges Bank acquired a new stake in PagSeguro Digital during the 2nd quarter worth $529,000. First Trust Advisors LP lifted its position in PagSeguro Digital by 9.7% in the second quarter. First Trust Advisors LP now owns 23,684 shares of the company’s stock valued at $228,000 after acquiring an additional 2,098 shares during the last quarter. Finally, Amundi lifted its position in PagSeguro Digital by 48.7% in the second quarter. Amundi now owns 25,946 shares of the company’s stock valued at $244,000 after acquiring an additional 8,500 shares during the last quarter. 45.88% of the stock is currently owned by hedge funds and other institutional investors.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. is a Brazil-based financial technology company that specializes in digital payment solutions for merchants and consumers. Through its online platform and a suite of physical point-of-sale devices, the company enables businesses of all sizes to accept credit and debit cards, process e-commerce transactions, and manage payments via QR codes and digital wallets. In addition to payment acceptance, PagSeguro offers prepaid accounts, funds transfers, and working-capital credit lines designed to support small and medium-sized enterprises.

The company’s product portfolio includes portable card readers, countertop terminals, and mobile point-of-sale devices that connect via Bluetooth or cellular networks.