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 EPS 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 business had revenue of $942.97 million during the quarter, compared to the consensus estimate 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 Performance

PAGS stock traded up $0.09 during midday trading on Monday, reaching $8.71. 2,284,755 shares of the company were exchanged, compared to its average volume of 3,613,365. The company has a market cap of $2.43 billion, a price-to-earnings ratio of 6.09, a price-to-earnings-growth ratio of 0.42 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 stock’s 50-day simple moving average is $9.08 and its 200 day simple moving average is $9.71.

PagSeguro Digital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $0.28 per share. 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. This represents a $1.12 dividend on an annualized basis and a yield of 12.9%. PagSeguro Digital’s dividend payout ratio is 72.73%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on PAGS shares. Autonomous Res cut PagSeguro Digital from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 30th. Weiss Ratings cut PagSeguro Digital from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Wall Street Zen downgraded PagSeguro Digital from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. UBS Group reduced their price target on PagSeguro Digital from $14.00 to $12.50 and set a “buy” rating on the stock in a research report on Friday, July 17th. Finally, Bank of America cut PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 price objective for the company. in a research note on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $10.98.

Insider Activity

In other news, insider Da Silva Ricardo Dutra sold 25,000 shares of the company’s stock in a transaction 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 in the company, valued at approximately $231,000. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Intech Investment Management LLC boosted its holdings in shares of PagSeguro Digital by 29.9% in the first quarter. Intech Investment Management LLC now owns 150,945 shares of the company’s stock valued at $1,152,000 after acquiring an additional 34,787 shares during the period. Hsbc Holdings PLC increased its holdings in shares of PagSeguro Digital by 41.9% in the 2nd quarter. Hsbc Holdings PLC now owns 44,955 shares of the company’s stock valued at $433,000 after acquiring an additional 13,279 shares during the period. Norges Bank acquired a new position in shares of PagSeguro Digital in the 2nd quarter valued at $529,000. First Trust Advisors LP raised its position in PagSeguro Digital by 9.7% in the 2nd 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 last quarter. Finally, Amundi raised its position in PagSeguro Digital by 48.7% in the 2nd quarter. Amundi now owns 25,946 shares of the company’s stock valued at $244,000 after purchasing an additional 8,500 shares during the last quarter. Institutional investors and hedge funds own 45.88% of the company’s stock.

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.