PagSeguro Digital (NYSE:PAGS) Issues Earnings Results

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

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 PAGS opened at $9.75 on Friday. PagSeguro Digital has a 1-year low of $8.42 and a 1-year high of $12.32. The company has a market capitalization of $2.73 billion, a P/E ratio of 6.82, a P/E/G ratio of 0.49 and a beta of 1.29. The firm’s 50 day simple moving average is $9.16 and its 200 day simple moving average is $9.60.

PagSeguro Digital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be paid a $0.28 dividend. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a yield of 11.5%. The ex-dividend date of this dividend is Wednesday, September 16th. PagSeguro Digital’s payout ratio is 78.32%.

Insider Buying and Selling

In other PagSeguro Digital news, insider Silva Dutra sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $9.24, for a total value of $231,000.00. Following the completion of the transaction, the insider owned 25,000 shares of the company’s stock, valued at $231,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Institutional Trading of PagSeguro Digital

A number of hedge funds have recently made changes to their positions in PAGS. Intech Investment Management LLC grew its position in PagSeguro Digital by 29.9% during the 1st quarter. Intech Investment Management LLC now owns 150,945 shares of the company’s stock worth $1,152,000 after acquiring an additional 34,787 shares during the last quarter. Hsbc Holdings PLC lifted its position in PagSeguro Digital by 41.9% in the second quarter. Hsbc Holdings PLC now owns 44,955 shares of the company’s stock valued at $433,000 after purchasing an additional 13,279 shares during the last quarter. Norges Bank purchased a new stake in shares of PagSeguro Digital during the second quarter valued at approximately $529,000. First Trust Advisors LP boosted its stake in shares of PagSeguro Digital by 9.7% during the second quarter. First Trust Advisors LP now owns 23,684 shares of the company’s stock valued at $228,000 after purchasing an additional 2,098 shares during the period. Finally, Amundi grew its holdings in shares of PagSeguro Digital by 48.7% in the second quarter. Amundi now owns 25,946 shares of the company’s stock worth $244,000 after purchasing an additional 8,500 shares during the last quarter. 45.88% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

PAGS has been the subject of a number of analyst reports. Jefferies Financial Group started coverage on shares of PagSeguro Digital in a research report on Thursday, July 23rd. They issued a “hold” rating and a $10.40 price objective for the company. Wall Street Zen cut shares of PagSeguro Digital from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Weiss Ratings downgraded shares of PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Bank of America lowered shares of PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 price target for the company. in a research report on Wednesday, July 15th. Finally, UBS Group decreased their price target on shares of PagSeguro Digital from $14.00 to $12.50 and set a “buy” rating on the stock in a report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, PagSeguro Digital presently has an average rating of “Hold” and an average 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.