Bank of New York Mellon Corp Makes New $9.36 Million Investment in StoneCo Ltd. $STNE

Key Points

• Bank of New York Mellon acquired 863,146 StoneCo shares valued at approximately $9.36 million, representing about 0.35% of the company. Institutional investors and hedge funds collectively own 73.19% of STNE.
• Analyst sentiment is mixed but leans cautious: StoneCo has a consensus rating of “Hold” and an average price target of $14.30, while several firms recently lowered ratings or targets.
• StoneCo reported quarterly earnings of $0.47 per share, slightly above estimates, with a 22.92% net margin. The stock opened at $10.37 and has traded between $9.08 and $19.95 over the past year.

Bank of New York Mellon Corp acquired a new stake in StoneCo Ltd. (NASDAQ:STNE - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 863,146 shares of the company's stock, valued at approximately $9,357,000. Bank of New York Mellon Corp owned about 0.35% of StoneCo at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of STNE. BRC Global BAH Investments Ltd. acquired a new position in StoneCo in the fourth quarter valued at approximately $84,501,000. Bank of America Corp DE increased its stake in StoneCo by 151.7% in the first quarter. Bank of America Corp DE now owns 6,032,572 shares of the company's stock valued at $85,180,000 after purchasing an additional 3,636,276 shares during the last quarter. Assenagon Asset Management S.A. raised its holdings in StoneCo by 1,288.4% during the second quarter. Assenagon Asset Management S.A. now owns 577,959 shares of the company's stock worth $6,265,000 after purchasing an additional 536,331 shares in the last quarter. Hsbc Holdings PLC raised its holdings in StoneCo by 286.6% during the first quarter. Hsbc Holdings PLC now owns 163,065 shares of the company's stock worth $2,298,000 after purchasing an additional 120,883 shares in the last quarter. Finally, Squadra Investments Gestao DE Recursos LTDA. lifted its position in shares of StoneCo by 435.5% during the 1st quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 6,662,253 shares of the company's stock worth $94,071,000 after buying an additional 5,418,053 shares during the last quarter. 73.19% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Bank of America lowered StoneCo from a "buy" rating to a "neutral" rating and set a $13.00 price objective on the stock. in a report on Wednesday, July 15th. UBS Group reduced their target price on StoneCo from $15.00 to $13.00 and set a "buy" rating for the company in a report on Friday, August 28th. Weiss Ratings cut StoneCo from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, June 18th. Citigroup downgraded StoneCo from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $18.00 to $11.00 in a research note on Friday, May 15th. Finally, JPMorgan Chase & Co. cut their price target on StoneCo from $20.00 to $16.50 and set an "overweight" rating on the stock in a research report on Wednesday, May 27th. Four equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $14.30.

StoneCo Stock Performance

Shares of STNE stock opened at $10.37 on Thursday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.84. The stock has a 50 day simple moving average of $10.57 and a 200-day simple moving average of $12.17. The company has a market cap of $2.58 billion, a price-to-earnings ratio of 4.18, a price-to-earnings-growth ratio of 0.28 and a beta of 1.75. StoneCo Ltd. has a 12-month low of $9.08 and a 12-month high of $19.95.

StoneCo (NASDAQ:STNE - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.01. StoneCo had a return on equity of 22.19% and a net margin of 22.92%.The firm had revenue of $129.73 million for the quarter, compared to analyst estimates of $708.24 million. On average, equities analysts forecast that StoneCo Ltd. will post 2.3 EPS for the current year.

Insiders Place Their Bets

In related news, Director Silvio Jose Morais sold 9,000 shares of StoneCo stock in a transaction on Friday, June 12th. The stock was sold at an average price of $11.29, for a total transaction of $101,610.00. Following the completion of the transaction, the director directly owned 21,000 shares of the company's stock, valued at approximately $237,090. The trade was a 30.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 11.25% of the stock is owned by insiders.

StoneCo Profile

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil's retail, restaurant and services sectors.

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