PagSeguro: Founder Steps Down, But Control Remains

Daniel James 487 Followers Follow Summary PagSeguro Digital Ltd. maintains strategic continuity despite the founder stepping down as chairman; control remains with UOL and Frias. PAGS saw payment volume return to growth and banking revenue surge, but payments revenue declined and credit losses increased amid a riskier credit mix. Gross profit growth lags full-year guidance, requiring a stronger second half; management expects to land near the lower end of its 6–9% range. At 5x 2026 earnings and a 13.4% shareholder yield, PAGS stock remains attractively valued; I maintain my Buy rating despite rising NPLs and competitive pressures. Edson Souza/iStock via Getty Images Introduction PagSeguro Digital Ltd.'s ( PAGS ) founder has stepped down as chairman , but investors shouldn't mistake the move for a change of control. Luis Frias resigned from the board after nine years while remaining This article was written by Daniel James 487 Followers Follow I am a part-time investor interested in equities, ETFs, macro, and emerging markets. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.