PagSeguro Digital (NYSE:PAGS) Issues Quarterly Earnings Results

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

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 Stock Down 2.1%

Shares of PagSeguro Digital stock traded down $0.21 on Friday, hitting $9.75. 1,887,731 shares of the company traded hands, compared to its average volume of 3,564,685. PagSeguro Digital has a 12-month low of $8.42 and a 12-month high of $12.32. The company has a market cap of $2.73 billion, a PE ratio of 6.82, a PEG ratio of 0.49 and a beta of 1.29. The company has a 50-day moving average price of $9.14 and a 200 day moving average price of $9.60.

PagSeguro Digital Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $0.28 per share. The ex-dividend date is Wednesday, September 16th. This represents a $1.12 annualized dividend and a dividend yield of 11.5%. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. PagSeguro Digital’s dividend payout ratio is presently 72.73%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on PAGS shares. Weiss Ratings lowered PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. UBS Group dropped 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 report on Friday, July 17th. Bank of America lowered shares of PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 price target on the stock. in a report on Wednesday, July 15th. Wall Street Zen lowered shares of PagSeguro Digital from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Finally, Jefferies Financial Group started coverage on PagSeguro Digital in a report on Thursday, July 23rd. They issued a “hold” rating and a $10.40 target price for the company. Two research 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. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $10.98.

Insider Activity

In related news, insider Silva 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 transaction of $231,000.00. Following the completion of the sale, the insider owned 25,000 shares of the company’s stock, valued at approximately $231,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Hedge Funds Weigh In On PagSeguro Digital

Hedge funds have recently added to or reduced their stakes in the company. Maple Rock Capital Partners Inc. acquired a new stake in PagSeguro Digital in the third quarter valued at approximately $28,011,000. Jacobs Levy Equity Management Inc. lifted its stake in shares of PagSeguro Digital by 5,302.5% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 2,156,848 shares of the company’s stock valued at $21,568,000 after purchasing an additional 2,116,925 shares during the last quarter. Orbis Allan Gray Ltd bought a new stake in PagSeguro Digital in the second quarter worth $20,106,000. Jain Global LLC acquired a new position in PagSeguro Digital during the fourth quarter worth $17,424,000. Finally, HRT Financial LP lifted its position in shares of PagSeguro Digital by 288.8% in the second quarter. HRT Financial LP now owns 1,631,649 shares of the company’s stock worth $15,729,000 after buying an additional 1,212,025 shares during the last quarter. Institutional investors and hedge funds own 45.88% of the company’s stock.

About PagSeguro Digital

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.