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.
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.
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.
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.