PagSeguro Digital (NYSE:PAGS) Announces Earnings Results

PagSeguro Digital (NYSE:PAGS) issued its earnings results on Tuesday, August 11th. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02, Zacks reports. The business had revenue of $942.97 million for the quarter, compared to analysts’ expectations of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%.

Here are the key takeaways from PagSeguro Digital’s conference call:

• Credit portfolio growth accelerated, with total credit outstanding up 31% year over year to BRL 5.1 billion, led by working capital and credit cards. Management said July working-capital origination improved and maintained confidence in its longer-term credit targets.
• Banking engagement continued to expand, with cash-in volumes up 23% year over year, active banking clients up 27% to 5.7 million, and higher penetration of investments, insurance, and credit products.
• Funding efficiency supported profitability as deposits rose 15% to nearly BRL 43 billion and funding costs declined for the ninth consecutive quarter. Financial costs fell 5% sequentially, while non-GAAP net income reached BRL 576 million and diluted EPS increased 10% year over year.
• PagBank maintained its 2026 guidance despite a more challenging macroeconomic environment and higher-than-expected Selic rates. Management expects the second half to contribute more strongly, but indicated gross profit performance may land near the lower end of its guidance range.
• Total losses increased 9% year over year as the credit portfolio expanded and shifted toward unsecured products, while high interest rates continue to pressure results. The company also noted uncertainty around future credit conditions and declined to provide specific performance metrics for individual credit products.

PagSeguro Digital Price Performance

Shares of NYSE:PAGS traded up $0.04 during mid-day trading on Wednesday, reaching $9.06. 1,036,655 shares of the company were exchanged, compared to its average volume of 3,592,932. The firm has a market cap of $2.54 billion, a price-to-earnings ratio of 6.35, a P/E/G ratio of 0.43 and a beta of 1.31. PagSeguro Digital has a 1 year low of $8.42 and a 1 year high of $12.32. The firm’s 50-day simple moving average is $9.08 and its 200 day simple moving average is $9.68.

PagSeguro Digital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 12.4%. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. PagSeguro Digital’s dividend payout ratio is 72.73%.

Insider Activity at PagSeguro Digital

In other news, insider Da Silva Ricardo Dutra sold 25,000 shares of PagSeguro Digital stock in a transaction on Monday, July 20th. The stock was sold at an average price of $9.24, for a total value of $231,000.00. Following the completion of the sale, the insider directly owned 25,000 shares of the company’s stock, valued at approximately $231,000. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Hedge Funds Weigh In On PagSeguro Digital

Several institutional investors have recently bought and sold shares of the company. Atlas Capital Advisors Inc. acquired a new position in shares of PagSeguro Digital in the fourth quarter valued at approximately $45,000. Caitong International Asset Management Co. Ltd boosted its position in PagSeguro Digital by 108.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company’s stock valued at $48,000 after buying an additional 2,569 shares during the period. Meeder Asset Management Inc. purchased a new position in PagSeguro Digital in the 4th quarter valued at approximately $53,000. Osaic Holdings Inc. grew its stake in shares of PagSeguro Digital by 93.4% in the second quarter. Osaic Holdings Inc. now owns 7,891 shares of the company’s stock worth $76,000 after acquiring an additional 3,810 shares in the last quarter. Finally, Brooklyn Investment Group purchased a new stake in shares of PagSeguro Digital during the fourth quarter worth $99,000. 45.88% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on PAGS shares. Bank of America cut PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 target price for the company. in a report on Wednesday, July 15th. Jefferies Financial Group assumed coverage on shares of PagSeguro Digital in a research report on Thursday, July 23rd. They set a “hold” rating and a $10.40 price objective for the company. UBS Group reduced their target price on shares of PagSeguro Digital from $14.00 to $12.50 and set a “buy” rating on the stock in a research note on Friday, July 17th. Wall Street Zen cut shares of PagSeguro Digital from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Finally, Autonomous Res lowered shares of PagSeguro Digital from a “hold” rating to a “strong sell” rating in a research report on Thursday, April 30th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued 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 $10.98.

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.