PagSeguro Digital (NYSE:PAGS) Announces Earnings Results

PagSeguro Digital (NYSE:PAGS) announced 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. PagSeguro Digital had a net margin of 10.46% and a return on equity of 16.36%. The company 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 Stock Down 0.1%

Shares of PagSeguro Digital stock opened at $10.12 on Friday. PagSeguro Digital has a 52-week low of $8.42 and a 52-week high of $12.32. The company has a 50 day moving average of $9.24 and a 200 day moving average of $9.57. The company has a market capitalization of $2.83 billion, a P/E ratio of 7.08, a P/E/G ratio of 0.40 and a beta of 1.29.

PagSeguro Digital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be issued a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 11.1%. This is a positive change from PagSeguro Digital’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 16th. PagSeguro Digital’s dividend payout ratio is 72.73%.

Insider Buying and Selling

In other PagSeguro Digital news, insider Silva Dutra sold 25,000 shares of the 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 sale, the insider directly owned 25,000 shares of the company’s stock, valued at approximately $231,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link.

Hedge Funds Weigh In On PagSeguro Digital

A number of institutional investors and hedge funds have recently modified their holdings of PAGS. Atlas Capital Advisors Inc. acquired a new position in PagSeguro Digital in the fourth quarter valued at $45,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of PagSeguro Digital by 108.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,933 shares of the company’s stock worth $48,000 after buying an additional 2,569 shares during the last quarter. Meeder Asset Management Inc. purchased a new position in shares of PagSeguro Digital during the fourth quarter worth about $53,000. Osaic Holdings Inc. increased its position in PagSeguro Digital by 93.4% in the 2nd quarter. Osaic Holdings Inc. now owns 7,891 shares of the company’s stock valued at $76,000 after acquiring an additional 3,810 shares during the period. Finally, Brooklyn Investment Group acquired a new position in PagSeguro Digital in the 4th quarter valued at about $99,000. Institutional investors and hedge funds own 45.88% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on PAGS. UBS Group cut their price objective on PagSeguro Digital from $14.00 to $12.50 and set a “buy” rating on the stock in a report on Friday, July 17th. Wall Street Zen downgraded PagSeguro Digital from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Weiss Ratings lowered shares of PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Bank of America cut shares of PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 price target on the stock. in a research report on Wednesday, July 15th. Finally, Jefferies Financial Group assumed coverage on shares of PagSeguro Digital in a research note on Thursday, July 23rd. They issued a “hold” rating and a $10.40 price objective for the company. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $10.98.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd., operating under the PagBank brand, is a Brazilian financial technology company that provides payment-processing and digital banking services. The company serves individual consumers, self-employed professionals, microbusinesses and small and medium-sized enterprises, with a focus on expanding access to electronic payments and financial services in Brazil.

Its offerings include point-of-sale payment terminals, online payment acceptance, mobile payment tools, QR code and Pix transactions, digital accounts, payment cards, personal and business loans, and other financial products.