Shares of PagSeguro Digital (NYSE: PAGS) sank in Friday morning trading. The Brazilian fintech company's stock was down by 14.7% as of 12:27 p.m. ET, according to data from S&P Global Market Intelligence.

PagSeguro published its Q1 earnings results after the market closed Thursday and recorded mixed performance compared to Wall Street's estimates. The business posted earnings of 1.24 Brazilian reals per share ($0.25 per share) on sales of 3.75 billion reals ($750 million), while the average analyst target had called for a profit of 1.10 reals per share ($0.22 per share) on revenue of 3.84 billion reals ($770 million). But beyond the sales miss, other key factors are driving Friday's big sell-off. 

PagSeguro has been moving toward having more of its credit portfolio built on secured loans as opposed to unsecured loans. Last quarter, the company indicated that it was on track to bring its share of secured loans to 60% this year. However, a response to an analyst's question during the company's earnings call suggests that it may fall a bit short of the target. 

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Source Fool.com