PAGS Should I Buy
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PagSeguro Digital Ltd (PAGS) is not an ideal buy for a beginner investor with a long-term strategy at this time. The technical indicators show mixed signals with a bearish MACD and RSI close to oversold levels, while hedge funds are aggressively selling the stock. Analyst ratings have recently been downgraded, and there are no strong positive catalysts or news to support a bullish case. While the company has shown modest financial growth in the latest quarter, the lack of clear upward momentum and weak sentiment make it prudent to hold off on buying.
The MACD is negative and expanding downward, indicating bearish momentum. RSI is at 32.665, near oversold but not providing a clear signal. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below key support levels (S1: 10.534). The pre-market price of $10.38 is below the pivot level of $11.118, suggesting further downside risk.
The company has shown modest financial growth in Q3 2025, with revenue up 5.67% YoY, net income up 4.39% YoY, and EPS up 13.25% YoY. Gross margin also improved by 7.93%.
Hedge funds are aggressively selling the stock, with a 401.13% increase in selling activity over the last quarter. Analysts have downgraded the stock recently, and there are no significant news or event-driven catalysts to support a bullish case. The pre-market price is down 0.67%, and technical indicators suggest bearish momentum.
In Q3 2025, PagSeguro reported revenue growth of 5.67% YoY to $5.11 billion, net income growth of 4.39% YoY to $554.49 million, and EPS growth of 13.25% YoY to 1.88. Gross margin improved to 53.08%, up 7.93%.
Recent analyst ratings are mixed to negative. BTG Pactual downgraded the stock to Neutral with a $13 price target, and Grupo Santander also downgraded it to Neutral with a $14 price target. UBS raised its price target to $14 from $13 while maintaining a Buy rating, but the overall sentiment leans towards caution.
