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Ricardo Dutra Da Silva, Principal Executive Officer, reported a sale of 50,000 Class A Common Shares of PagSeguro Digital Ltd. (PAGS -2.17%) across transactions executed on July 20, and July 21, 2026. SEC Form 4 filing.

Today's Change

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9.46

Transaction summaryMetricValueTransaction value$463,000Shares sold (indirectly held)50,000Post-transaction shares (directly held)347,830Post-transaction value$3.3 millionTransaction value based on SEC Form 4 weighted average sale price ($9.26); post-transaction value based on July 21, 2026 market close ($9.58).

Key questionsHow did this transaction change the executive's ownership structure?
The sale resulted in the complete liquidation of 50,000 shares held indirectly, which represented 100% of that specific ownership bucket. Ricardo Dutra Da Silva continues to hold 347,830 shares directly, representing a 0.12% ownership stake in the company.What were the specific execution details for this disposition?
The shares were sold at a weighted average price of $9.26 per share, sitting slightly below the market close of $9.58 on the final day of the transaction window. According to the filing, individual execution prices ranged from $9.26 to $9.27.What is the current business profile of PagSeguro Digital?
Based in São Paulo, the company provides financial and payment solutions, including digital banking services, wire transfers, and various point-of-sale systems for micro-merchants and small businesses in Brazil and internationally. The company reported trailing 12-month revenue of $19.8 billion and net income of $2.1 billion as of the latest reporting.How has the stock performed relative to this transaction?
Shares were priced at $9.67 as of the July 22, 2026 market close. This valuation follows a period of appreciation, with the stock having realized a 20% return over the one-year period ending July 21, 2026.Company OverviewMetricValueShare Price (as of market close 2026-07-22)$9.67Market Capitalization$2.7 billionRevenue (TTM)$19.8 billionNet Income (TTM)$2.1 billionCompany SnapshotPagSeguro Digital provides a comprehensive suite of financial and payment solutions, including digital banking services, debit and credit card products, point-of-sale payment systems, and specialized financial services such as tax collection and wire transfers.The company generates revenue through transaction fees, interchange commissions, service charges, and financial product offerings across its integrated fintech platform that serves both consumers and businesses.PagSeguro's primary customer base consists of individual entrepreneurs, micro-merchants, small and medium-sized enterprises, and retail consumers throughout Brazil and select international markets.PagSeguro Digital operates as a leading fintech platform in Brazil, leveraging its extensive merchant network and digital infrastructure to capture significant transaction volumes across payment processing and financial services. The company's competitive advantage derives from its integrated ecosystem combining payment processing, digital banking, and financial products, enabling cross-selling opportunities and customer retention across its diversified revenue streams. With TTM revenue of $19.8 billion and net income of $2.1 billion, PagSeguro demonstrates substantial scale and profitability within the specialty business services sector.

What this transaction means for investorsInvestors usually don’t like to see insiders selling shares. But there are reasons an executive may sell shares without it reflecting their outlook for the stock. These can include having to pay a large personal expense or doing reasonable portfolio diversification.

Business-wise, Wall Street analysts expect PagSaguro to post a decent fiscal 2026, with revenue seen rising nearly 4% in  the company’s reporting currency (Brazilian reals), with a much healthier gain in net income of just about 13%. In the company’s May earnings call, da Silva noted how well the company has been performing financially. For example, deposits rose 23% year over year, which is important because deposits are a fundamental source of income for banks (by investing in a usually safe, highly regulated fashion).  The executive also boasted of the stock’s  return to shareholders, thanks to share buybacks. In the past year, PAGS shares traded on the New York Stock Exchange have gained about 20%.

Given the positive outlook for the business and da Silva’s still sizeable direct ownership in the business, at more than $3 million value, investors should weigh the executive’s sale as part of their overall thesis in the business, but it’s not a red flag to avoid PagSeguro Digital stock.

In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was up +2.78% at $9.25. The stock's performance was ahead of the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.

Heading into today, shares of the company had gained 0.67% over the past month, lagging the Business Services sector's gain of 2.8% and the S&P 500's gain of 2.2%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.4 per share, which would represent year-over-year growth of 17.65%. Alongside, our most recent consensus estimate is anticipating revenue of $1.05 billion, indicating a 17.55% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.7 per share and revenue of $4.25 billion, indicating changes of +19.72% and +16.27%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PagSeguro Digital Ltd. is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that PagSeguro Digital Ltd. has a Forward P/E ratio of 5.31 right now. This expresses a discount compared to the average Forward P/E of 11.31 of its industry.

Also, we should mention that PAGS has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.83 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.24, which compares to its industry's average of 17.61. PAGS's Forward P/E has been as high as 7.81 and as low as 4.84, with a median of 6.45, all within the past year.

Investors should also note that PAGS holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.03. PAGS's PEG has been as high as 0.69 and as low as 0.33, with a median of 0.49, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAGS has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.84.

Finally, investors should note that PAGS has a P/CF ratio of 4.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PAGS's P/CF compares to its industry's average P/CF of 12.76. Within the past 12 months, PAGS's P/CF has been as high as 4.68 and as low as 2.85, with a median of 3.80.

These figures are just a handful of the metrics value investors tend to look at, but they help show that PagSeguro Digital is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAGS feels like a great value stock at the moment.

PagSeguro Digital Ltd. (PAGS - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for PagSeguro Digital is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For PagSeguro Digital, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for PagSeguro DigitalThis company is expected to earn $1.70 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for PagSeguro Digital. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of PagSeguro Digital to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

PagSeguro Digital (PAGS - Free Report) is a stock many investors are watching right now. PAGS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.24, which compares to its industry's average of 16.86. Over the past year, PAGS's Forward P/E has been as high as 7.81 and as low as 4.84, with a median of 6.45.

Investors should also note that PAGS holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 0.98. PAGS's PEG has been as high as 0.69 and as low as 0.33, with a median of 0.49, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PAGS has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.77.

Finally, investors should note that PAGS has a P/CF ratio of 4.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PAGS's current P/CF looks attractive when compared to its industry's average P/CF of 12.13. Within the past 12 months, PAGS's P/CF has been as high as 4.68 and as low as 2.85, with a median of 3.80.

These are only a few of the key metrics included in PagSeguro Digital's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PAGS looks like an impressive value stock at the moment.

Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases.

In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company’s market capitalization to its revenues, the P/S ratio offers a clearer picture of value when earnings are minimal or volatile.

If you are looking for growth at a discount, low P/S stocks can offer compelling opportunities. These stocks often trade below their intrinsic value, making them attractive to investors seeking upside potential without paying a premium. While the P/S ratio alone does not guarantee success, when combined with strong fundamentals and positive business momentum, it can signal a stock poised for a breakout.

KT Corporation (KT - Free Report) , Asahi Kasei Corporation (AHKSY - Free Report) , Apple Hospitality REIT, Inc. (APLE - Free Report) , PagSeguro Digital (PAGS - Free Report) and First American Financial Corporation (FAF - Free Report) are some companies with low price-to-sales ratios and the potential to offer higher returns.

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.

A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.

If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.

Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.

The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.

However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.

Price-to-Sales less than the Median Price-to-Sales for its Industry: The lower the price-to-sales ratio, the better.

Price-to-Earnings using F(1) estimate less than the Median Price-to-Earnings for its Industry: The lower, the better.

Price-to-Book (Common Equity) less than the Median Price-to-Book for its Industry: This is another parameter to ensure the value feature of a stock.

Debt-to-Equity (Most Recent) less than the Median Debt-to-Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.

Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.

Zacks Rank less than or equal to #2 (Buy): Zacks Rank #1 (Strong Buy) or #2 stocks are known to outperform, irrespective of the market environment.

Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank 1 or 2, offer the best opportunities in the value investing space.

Here are five of the 18 stocks that qualified the screening:

KT Corp is a leading integrated telecom and digital platform provider in South Korea, offering wireless, broadband and IPTV services. The company is expanding beyond connectivity into AI, cloud, data centers and enterprise digital transformation, aiming to diversify revenue streams. KT is also strengthening its media, fintech and content ecosystem to enhance customer engagement. Stable subscriber growth and bundled offerings support recurring cash flows, while B2B digital services provide long-term upside.

However, competition, regulatory pressures and heavy network investment requirements remain risks. Overall, KT combines defensive telecom earnings with emerging growth opportunities in AI-driven and platform-based services. KT currently has a Zacks Rank of 2 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tokyo, Japan-based Asahi Kasei is a diversified industrial group operating across materials, homes and healthcare. The company produces petrochemicals, battery separators, electronics materials and fibers, while also building residential homes and providing construction solutions. Its healthcare segment includes pharmaceuticals, medical devices and critical care products, supporting stable long-term growth.

Asahi Kasei benefits from exposure to electric vehicle batteries, semiconductor demand and aging demographics in healthcare. However, earnings can be sensitive to cyclical chemicals demand and raw material costs. Overall, the company combines defensive healthcare revenues with growth opportunities in advanced materials and sustainability-focused innovations. AHKSY has a Value Score of A and a Zacks Rank of 2 at present.

Apple Hospitality is a publicly traded real estate investment trust that owns the largest and most diverse portfolio of upscale, rooms-focused hotels in the United States. The company offers a fundamentally sound lodging REIT story built on portfolio quality, brand alignment and disciplined execution. It owns a geographically diversified collection of room-focused hotels affiliated with leading brands, giving it broad exposure to leisure, corporate and group demand.

Management has demonstrated prudent capital allocation through selective acquisitions, timely dispositions and consistent reinvestment to keep properties competitive. A flexible balance sheet and ample liquidity provide resilience across cycles. While recent demand softness weighed on performance, leisure trends remain supportive and operational agility positions the portfolio to benefit as business travel normalizes, supporting long-term cash flow stability and shareholder returns. APLE has a Value Score of B and a Zacks Rank of 2 at present.

São Paulo, Brazil-based PagSeguro Digital offers a broad suite of financial and payment solutions tailored for consumers, individual entrepreneurs, micro-merchants, and small to mid-sized businesses across Brazil and select international markets. Its offerings include digital banking, wire transfers, tax payments, ATM access, and POS and online payment tools. With a tech-driven, integrated ecosystem, PagSeguro delivers accessible services that support daily operations and drive business growth.

PAGS is strengthening its digital banking platform, expanding services for consumers and merchants, while adjusting credit offerings to manage funding cost pressures. Its shift toward secured lending reflects a disciplined, risk-aware strategy. With a focus on innovation, sustainable growth and prudent financial management, PagSeguro is well-positioned to seize long-term opportunities in Brazil’s dynamic digital finance space. PAGS currently has a Value Score of A and a Zacks Rank #2.

First American Financial presents a solid investment case, supported by its leadership in the U.S. title insurance market and strong pricing power in a concentrated industry. The company is focused on expanding its core title insurance and settlement services business while strengthening distribution relationships and broadening its international footprint. Strategic acquisitions and investments in technology, data and AI are enhancing efficiency and expanding its title plant coverage, positioning the company well for the next real estate cycle.

Additionally, consistent shareholder returns through dividends and share repurchases, supported by a high-quality investment portfolio and improving profitability, make the stock attractive for long-term investors seeking stability and income. FAF currently has a Value Score of A and a Zacks Rank #2.

In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $10.34, marking a -1.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.

Coming into today, shares of the company had lost 0.38% in the past month. In that same time, the Business Services sector lost 6.27%, while the S&P 500 lost 4.28%.

The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.39 per share. This would mark year-over-year growth of 25.81%. Simultaneously, our latest consensus estimate expects the revenue to be $984.75 million, showing a 19.06% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.67 per share and a revenue of $4.04 billion, representing changes of +17.61% and +10.36%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.91% higher. At present, PagSeguro Digital Ltd. boasts a Zacks Rank of #2 (Buy).

Looking at valuation, PagSeguro Digital Ltd. is presently trading at a Forward P/E ratio of 6.31. Its industry sports an average Forward P/E of 9.84, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.

Investors should also note that PAGS has a PEG ratio of 0.42 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.79.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Posted by Defense World Staff on Apr 7th, 2026

Mastercard (NYSE:MA – Get Free Report) and PagSeguro Digital (NYSE:PAGS – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings This is a breakdown of current ratings for Mastercard and PagSeguro Digital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Mastercard 1 1 20 6 3.11 PagSeguro Digital 0 4 5 0 2.56 Mastercard currently has a consensus price target of $664.40, suggesting a potential upside of 32.60%. PagSeguro Digital has a consensus price target of $11.86, suggesting a potential upside of 11.49%. Given Mastercard’s stronger consensus rating and higher probable upside, analysts plainly believe Mastercard is more favorable than PagSeguro Digital.

Profitability This table compares Mastercard and PagSeguro Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Mastercard 45.65% 203.92% 29.74% PagSeguro Digital 10.37% 16.20% 3.33% Insider and Institutional Ownership 97.3% of Mastercard shares are owned by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are owned by institutional investors. 0.1% of Mastercard shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends Mastercard pays an annual dividend of $3.48 per share and has a dividend yield of 0.7%. PagSeguro Digital pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Mastercard pays out 21.1% of its earnings in the form of a dividend. PagSeguro Digital pays out 10.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mastercard has increased its dividend for 13 consecutive years. PagSeguro Digital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk Mastercard has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings This table compares Mastercard and PagSeguro Digital”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Mastercard $32.79 billion 13.63 $14.97 billion $16.52 30.33 PagSeguro Digital $3.65 billion 0.96 $379.40 million $1.28 8.31 Mastercard has higher revenue and earnings than PagSeguro Digital. PagSeguro Digital is trading at a lower price-to-earnings ratio than Mastercard, indicating that it is currently the more affordable of the two stocks.

Summary Mastercard beats PagSeguro Digital on 15 of the 18 factors compared between the two stocks.

About Mastercard (Get Free Report)

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.

About PagSeguro Digital (Get Free Report)

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

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From a technical perspective, PagSeguro Digital Ltd. (PAGS - Free Report) is looking like an interesting pick, as it just reached a key level of support. PAGS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

PAGS has rallied 6.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PAGS could be on the verge of another move higher.

Looking at PAGS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Investors should think about putting PAGS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has PagSeguro Digital Ltd. (PAGS - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

PagSeguro Digital Ltd. is a member of our Business Services group, which includes 234 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for PAGS' full-year earnings has moved 2.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, PAGS has gained about 10.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 11.4% on average. This means that PagSeguro Digital Ltd. is performing better than its sector in terms of year-to-date returns.

UL Solutions Inc. (ULS - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.1%.

The consensus estimate for UL Solutions Inc.'s current year EPS has increased 6.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, PagSeguro Digital Ltd. is a member of the Financial Transaction Services industry, which includes 36 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, stocks in this group have lost 17.9% this year, meaning that PAGS is performing better in terms of year-to-date returns.

UL Solutions Inc., however, belongs to the Business - Services industry. Currently, this 20-stock industry is ranked #149. The industry has moved -12.4% so far this year.

Going forward, investors interested in Business Services stocks should continue to pay close attention to PagSeguro Digital Ltd. and UL Solutions Inc. as they could maintain their solid performance.

In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was up +2.12% at $11.58. This move outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.

The company's stock has climbed by 17.76% in the past month, exceeding the Business Services sector's gain of 1.65% and the S&P 500's gain of 5.98%.

Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.4, signifying a 29.03% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 22.01% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.66 per share and a revenue of $4.12 billion, signifying shifts of +16.9% and +12.65%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% higher. PagSeguro Digital Ltd. currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, PagSeguro Digital Ltd. is holding a Forward P/E ratio of 6.82. Its industry sports an average Forward P/E of 11.15, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.

It is also worth noting that PAGS currently has a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.93.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

PagSeguro Digital Ltd. (PAGS - Free Report) closed at $10.11 in the latest trading session, marking a -1.37% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq depreciated by 0.9%.

The stock of company has risen by 5.56% in the past month, leading the Business Services sector's gain of 5.05% and undershooting the S&P 500's gain of 12.8%.

Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.4 per share. This would mark year-over-year growth of 29.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.01 billion, indicating a 22.01% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.66 per share and a revenue of $4.12 billion, indicating changes of +16.9% and +12.65%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.17. This represents a discount compared to its industry average Forward P/E of 12.01.

We can additionally observe that PAGS currently boasts a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.86.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Wall Street expects a year-over-year increase in earnings on higher revenues when PagSeguro Digital Ltd. (PAGS - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +29%.

Revenues are expected to be $1.01 billion, up 22% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for PagSeguro Digital?For PagSeguro Digital, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.40%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that PagSeguro Digital will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that PagSeguro Digital would post earnings of $0.42 per share when it actually produced earnings of $0.43, delivering a surprise of +2.38%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

PagSeguro Digital doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Financial Transaction Services industry, Fidelity National Information Services (FIS - Free Report) , is soon expected to post earnings of $1.28 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +5.8%. This quarter's revenue is expected to be $3.27 billion, up 29.3% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Fidelity National has been revised 1% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.17%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Fidelity National will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

PagSeguro Digital Ltd. (PAGS - Free Report) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -1.89%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.43, delivering a surprise of +2.38%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

PagSeguro Digital, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $950.5 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.81%. This compares to year-ago revenues of $827.14 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

PagSeguro Digital shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 8.1%.

What's Next for PagSeguro Digital?While PagSeguro Digital has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for PagSeguro Digital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $1 billion in revenues for the coming quarter and $1.66 on $4.12 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, AtlasClear Holdings, Inc. (ATCH - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

AtlasClear Holdings, Inc.'s revenues are expected to be $5.22 million, up 105.5% from the year-ago quarter.

PagSeguro Digital NYSE: PAGS, which operates as PagBank, reported higher first-quarter earnings per share and continued expansion in its banking and credit operations, while management said elevated Brazilian interest rates continued to pressure financial costs and gross profit.

On the company’s first-quarter 2026 earnings call, Principal Executive Officer Ricardo Dutra said PagBank made “continued progress” executing its strategy, with banking and credit acceleration and operating leverage contributing to earnings growth despite a challenging macroeconomic backdrop.

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Total Payment Volume reached BRL 128 billion in the quarter, flat year over year. Dutra said the result confirmed a gradual reacceleration compared with prior quarters. The company’s expanded credit portfolio reached BRL 51 billion, up 11% from a year earlier, while total loans grew 36% year over year. Deposits rose 23% to BRL 42 billion.

Net revenue excluding interchange fees was BRL 3.3 billion, up 6.4% year over year, driven mainly by credit acceleration and banking performance. Recurring non-GAAP net income reached BRL 575 million, up 4%. Dutra said the result was affected by higher financial expenses tied to Brazil’s base interest rate, partially offset by operating leverage. Diluted non-GAAP EPS increased 12% year over year, helped by capital optimization initiatives.

Banking and Credit Remain Key Growth Areas CEO Carlos Mauad said PagBank’s integrated payments, banking and credit platform serves individuals and micro, small and medium-sized businesses. He said the company sees significant room to grow in several banking segments where its market share is currently below 1%.

Mauad highlighted increased customer engagement across PagBank’s ecosystem. Cash-in volumes, excluding acquiring-related inflows, reached BRL 81 billion, up 11% year over year, while cash-in active clients grew 12%. He attributed the performance to stronger usage of the platform, including bill payments, Pix transactions and increased penetration of investment and insurance products.

PagBank’s total credit portfolio reached BRL 5 billion at the end of the quarter, growing 36% year over year. Mauad said credit growth was broad-based across products and channels, with working capital loans leading the expansion. Working capital grew 191% year over year and represented 10% of the total portfolio.

Management said asset quality remained controlled. Mauad noted that nonperforming loan indicators were well below the Brazilian banking system average, while later in the call he said PagBank’s NPLs were “almost half of the industry.” He said the company is gradually shifting from a mostly secured credit portfolio toward a more balanced mix as it expands underwriting for unsecured products.

Funding Costs Decline as Deposits Grow Mauad said deposits reached BRL 42 billion, with more than 90% sourced from PagBank’s own platform. Including other funding sources such as related-party deposits and borrowings, total funding was nearly BRL 47 billion, up 15% year over year.

The company’s deposit annual percentage yield fell for the eighth straight quarter, reaching 83.9% of CDI in the first quarter. Mauad said average remuneration on demand deposits was 38.6% of CDI, down 10 percentage points year over year. The loan-to-funding ratio improved to 109% from 114% a year earlier.

In response to analyst questions, CFO Gustavo Sechin said PagBank has implemented disciplined repricing and reductions in remuneration on certificates of deposit and checking accounts to mitigate higher financial costs. He said the company is still identifying additional opportunities to address funding cost pressures, while Mauad said some changes made near the end of the first quarter should continue to affect results going forward.

Financial Costs Weigh on Gross Profit Sechin said total revenue and income excluding interchange fees grew 6.4% to BRL 3.3 billion, driven primarily by banking and credit expansion. Banking revenue increased 41% year over year, supported by credit growth and higher transactionality from clients. Gross profit totaled BRL 1.9 billion, up nearly 1% year over year, with banking representing about 31% of total gross profit.

However, Sechin said the company continued to face pressure from rising financial costs due to Brazil’s higher benchmark interest rate. He said the Selic rate was up 1.9 percentage points over the period, although the effect was partially mitigated by lower deposit APY. Sequentially, financial costs declined 2.6%.

Total losses, including acquiring chargebacks and expected credit loss provisions, rose 29% year over year, mainly reflecting credit portfolio expansion and mix changes. On the acquiring side, chargebacks fell 15% year over year, which Sechin attributed to improved fraud prevention.

Sechin pointed to operating leverage as a key highlight, saying operating expenses declined as a percentage of revenue by about 230 basis points year over year. He cited cost discipline and the use of artificial intelligence in areas such as client service. During the Q&A session, he said the company is “just in the beginning” of opportunities to generate further operating leverage.

Shareholder Returns and Capital Optimization Dutra said PagBank returned approximately BRL 2.4 billion to shareholders over the last 12 months through dividends and share buybacks, representing a total yield of around 16% over that period. Sechin said the company is working to bring its Basel index to between 18% and 22% in coming years.

PagBank’s managerial Basel ratio stood at 24.1%, down more than four percentage points from the prior quarter. Sechin said the level still provides ample capacity to support credit expansion and shareholder returns.

The company plans to distribute an additional BRL 400 million in dividends in June, equivalent to $0.26 per common share, in line with its commitment to distribute at least BRL 1.4 billion in dividends this year.

Management Reaffirms 2026 Guidance Sechin said PagBank ended the first quarter above its expected range for credit portfolio growth and expects consistent growth through the year. He said gross profit expansion was limited in the first quarter due to Selic-related financial cost pressure, but management expects those headwinds to fade in the second quarter and beyond.

In response to UBS analyst Kaio Da Prato, Mauad said TPV trends have improved from a 5% year-over-year decline in the third quarter of last year to a roughly 2% decline in the fourth quarter and flat growth in the first quarter. He said management expects TPV to turn positive in the second quarter and accelerate in the second half.

Asked about competition, Mauad said the small and midsize business landscape has been broadly stable over the past 24 months, naming PagBank, Stone, Mercado Pago and CloudWalk as key players in that segment. He said competitors posting 20% to 25% TPV growth are often serving different customer clusters, including enterprise clients and “serial acquirers.”

Mauad also said PagBank expects credit growth to accelerate in 2027, citing the current macro environment and the fact that some products are still in pilot or development. He identified payroll loans for private-company employees as one area with potential, while noting the company remains cautious on unsecured lending.

“We are confident to achieve our 2026 guidance,” Mauad said, adding that PagBank remains focused on operational excellence, disciplined expansion and consistent value creation as it works toward its 2029 targets.

About PagSeguro Digital NYSE: PAGSPagSeguro 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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