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

PagSeguro Digital Ltd. (NYSE:PAGS) was the target of some unusual options trading on Tuesday. Stock investors acquired 11,864 call options on the company. This is an increase of 392% compared to the average daily volume of 2,409 call options.

PagSeguro Digital Stock Up 10.3 %

NYSE PAGS opened at $9.34 on Wednesday. PagSeguro Digital has a 52 week low of $6.11 and a 52 week high of $14.82. The firm has a 50 day moving average of $7.99 and a two-hundred day moving average of $7.61. The stock has a market capitalization of $3.08 billion, a PE ratio of 7.72, a price-to-earnings-growth ratio of 0.51 and a beta of 1.85.

PagSeguro Digital (NYSE:PAGS) last posted its earnings results on Friday, February 21st. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.29 by $0.05. The firm had revenue of $875.27 million for the quarter, compared to analyst estimates of $872.66 million. PagSeguro Digital had a return on equity of 15.49% and a net margin of 11.12%. On average, equities research analysts expect that PagSeguro Digital will post 1.17 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PagSeguro Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PAGS. Signaturefd LLC boosted its holdings in shares of PagSeguro Digital by 1,306.5% in the 4th quarter. Signaturefd LLC now owns 4,557 shares of the company’s stock valued at $29,000 after buying an additional 4,233 shares in the last quarter. State of Wyoming lifted its holdings in shares of PagSeguro Digital by 32.8% in the 4th quarter. State of Wyoming now owns 6,436 shares of the company’s stock valued at $40,000 after purchasing an additional 1,591 shares during the last quarter. Harbor Capital Advisors Inc. grew its stake in PagSeguro Digital by 166.9% during the 1st quarter. Harbor Capital Advisors Inc. now owns 6,685 shares of the company’s stock worth $51,000 after buying an additional 4,180 shares during the last quarter. Advisory Services Network LLC purchased a new stake in PagSeguro Digital in the fourth quarter valued at approximately $66,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of PagSeguro Digital in the fourth quarter valued at approximately $79,000. 45.88% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Citigroup upgraded PagSeguro Digital from a “neutral” rating to a “buy” rating and raised their target price for the company from $7.00 to $10.00 in a report on Tuesday. One analyst has rated the stock with a sell rating, four have assigned a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $12.00.

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.