PagSeguro Digital Ltd (NYSE: PAGS)’s stock price has soared by 1.48 in relation to previous closing price of 8.81. Nevertheless, the company has seen a loss of -1.32% in its stock price over the last five trading days. seekingalpha.com reported 2024-09-26 that PagSeguro’s 2Q24 results showed strong revenue growth (+34% TPV), combined with a conservative loan portfolio. Despite increased costs and expenses, net income grew by 31.7% y/y, supported by new product launches and innovation. The uncertainty surrounding the interest rate trajectory makes me believe that the company’s more conservative approach is the correct one. The valuation remains attractive by any metric analyzed.
Is It Worth Investing in PagSeguro Digital Ltd (NYSE: PAGS) Right Now?
The price-to-earnings ratio for PagSeguro Digital Ltd (NYSE: PAGS) is above average at 7.64x. The 36-month beta value for PAGS is also noteworthy at 1.94. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 1 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
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The public float for PAGS is 208.35M, and at present, short sellers hold a 9.83% of that float. The average trading volume of PAGS on September 30, 2024 was 5.05M shares.
PAGS’s Market Performance
PAGS’s stock has seen a -1.32% decrease for the week, with a -17.98% drop in the past month and a -23.52% fall in the past quarter. The volatility ratio for the week is 3.50%, and the volatility levels for the past 30 days are at 3.86% for PagSeguro Digital Ltd The simple moving average for the last 20 days is -6.04% for PAGS’s stock, with a simple moving average of -27.51% for the last 200 days.
Analysts’ Opinion of PAGS
Many brokerage firms have already submitted their reports for PAGS stocks, with Morgan Stanley repeating the rating for PAGS by listing it as a “Underweight.” The predicted price for PAGS in the upcoming period, according to Morgan Stanley is $6.50 based on the research report published on September 05, 2024 of the current year 2024.
Goldman, on the other hand, stated in their research note that they expect to see PAGS reach a price target of $15. The rating they have provided for PAGS stocks is “Buy” according to the report published on June 26th, 2024.
Evercore ISI gave a rating of “Outperform” to PAGS, setting the target price at $18 in the report published on March 26th of the current year.
PAGS Trading at -21.63% from the 50-Day Moving Average
After a stumble in the market that brought PAGS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -40.32% of loss for the given period.
Volatility was left at 3.86%, however, over the last 30 days, the volatility rate increased by 3.50%, as shares sank -16.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -29.94% lower at present.
During the last 5 trading sessions, PAGS fell by -1.32%, which changed the moving average for the period of 200-days by -14.86% in comparison to the 20-day moving average, which settled at $9.43. In addition, PagSeguro Digital Ltd saw -28.31% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for PAGS
Current profitability levels for the company are sitting at:
- 0.33 for the present operating margin
- 0.48 for the gross margin
The net margin for PagSeguro Digital Ltd stands at 0.11. The total capital return value is set at 0.21. Equity return is now at value 14.56, with 3.61 for asset returns.
Based on PagSeguro Digital Ltd (PAGS), the company’s capital structure generated 0.64 points at debt to capital in total, while cash flow to debt ratio is standing at 0.02. The debt to equity ratio resting at 1.76. The interest coverage ratio of the stock is 1.71.
Currently, EBITDA for the company is 6.56 billion with net debt to EBITDA at 3.33. When we switch over and look at the enterprise to sales, we see a ratio of 2.32. The receivables turnover for the company is 0.33for trailing twelve months and the total asset turnover is 0.26. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.48.
Conclusion
In summary, PagSeguro Digital Ltd (PAGS) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
