How does PagSeguro Digital Ltd. (PAGS) change from a tortoise to a hare?

PagSeguro Digital Ltd. (NYSE: PAGS) stock jumped 2.86% on Tuesday to $9.35 against a previous-day closing price of $9.09. With 2.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.15 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $9.39 whereas the lowest price it dropped to was $8.91. The 52-week range on PAGS shows that it touched its highest point at $23.29 and its lowest point at $7.51 during that stretch. It currently has a 1-year price target of $15.36. Beta for the stock currently stands at 1.46.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PAGS was up-trending over the past week, with a rise of 3.09%, but this was up by 11.05% over a month. Three-month performance dropped to -32.93% while six-month performance fell -14.85%. The stock lost -54.92% in the past year, while it has gained 6.98% so far this year. A look at the trailing 12-month EPS for PAGS yields 0.81 with Next year EPS estimates of 5.43. For the next quarter, that number is 1.27. This implies an EPS growth rate of -10.40% for this year and 12.08% for next year. EPS is expected to grow by 10.24% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 53.40%.

Float and Shares Shorts:

At present, 326.72 million PAGS shares are outstanding with a float of 200.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.73 million, which was 2.05% higher than short shares on Sep 14, 2022. In addition to Mr. Luis Frias as the firm’s Chairman & Principal Exec. Officer, Mr. Alexandre Magnani serves as its CEO & COO.

Institutional Ownership:

Through their ownership of 51.91% of PAGS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.94% of PAGS, in contrast to 32.70% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in PAGS with 12.26% of the stake, Capital Research & Management Co holds 24,478,274 shares worth 24,478,274. A second-largest stockholder of PAGS, Fidelity Management & Research Co, holds 18,232,432 shares, controlling over 9.13% of the firm’s shares. Sylebra Capital Ltd. is the third largest shareholder in PAGS, holding 10,606,667 shares or 5.31% stake. With a 6.86% stake in PAGS, the Fidelity Inv. Trust – Emerging Ma is the largest stakeholder. A total of 13,698,749 shares are owned by the mutual fund manager. The Invesco Developing Markets Fund, which owns about 6.41% of PAGS stock, is the second-largest Mutual Fund holder. It holds 12,793,005 shares valued at 111.81 million. American Funds New World Fund holds 5.09% of the stake in PAGS, owning 10,161,060 shares worth 88.81 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PAGS since 22 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PAGS analysts setting a high price target of $210.07 and a low target of $40.79, the average target price over the next 12 months is $78.47. Based on these targets, PAGS could surge 2146.74% to reach the target high and rise by 336.26% to reach the target low. Reaching the average price target will result in a growth of 739.25% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PAGS will report FY 2022 earnings on 03/20/2024. Analysts have provided yearly estimates in a range of $5.94 being high and $4.33 being low. For PAGS, this leads to a yearly average estimate of $4.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PagSeguro Digital Ltd. surprised analysts by -$0.00 when it reported $0.23 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $1.83 and the low estimate is $1.08. The average estimate for the next quarter is thus $1.26.

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