BW Gestao de Investimentos Ltda. Buys Shares of 200,000 StoneCo Ltd. $STNE

Key Points

• BW Gestao de Investimentos Ltda. purchased a new stake of 200,000 shares of StoneCo (NASDAQ:STNE) in Q3 valued at about $3.78 million, representing roughly 0.07% of the company.
• StoneCo beat EPS expectations with $0.50 per share (consensus $0.48) but missed revenue at $675.4 million (consensus $704.3 million); the quarter showed a net margin of 15.38% and ROE of 21.55%.
• Analysts' consensus is a Moderate Buy with a $17.50 target; the stock trades with a market cap of $3.97 billion, a PE of 9.07, and a 12‑month range of $8.95–$19.95.

BW Gestao de Investimentos Ltda. purchased a new stake in StoneCo Ltd. (NASDAQ:STNE - Free Report) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 200,000 shares of the company's stock, valued at approximately $3,782,000. BW Gestao de Investimentos Ltda. owned approximately 0.07% of StoneCo as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. USA Financial Formulas acquired a new stake in StoneCo in the 3rd quarter valued at about $55,000. TD Waterhouse Canada Inc. acquired a new position in StoneCo during the third quarter worth about $55,000. Richardson Financial Services Inc. lifted its holdings in shares of StoneCo by 64.2% in the third quarter. Richardson Financial Services Inc. now owns 2,943 shares of the company's stock valued at $56,000 after purchasing an additional 1,151 shares in the last quarter. Concord Wealth Partners purchased a new stake in shares of StoneCo in the third quarter valued at about $60,000. Finally, Assetmark Inc. grew its position in shares of StoneCo by 773.6% in the third quarter. Assetmark Inc. now owns 3,608 shares of the company's stock valued at $68,000 after purchasing an additional 3,195 shares during the last quarter. Institutional investors and hedge funds own 73.19% of the company's stock.

StoneCo Stock Performance

Shares of NASDAQ STNE opened at $13.87 on Tuesday. The company has a 50-day simple moving average of $15.81 and a 200-day simple moving average of $16.60. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.37 and a quick ratio of 1.43. The company has a market cap of $3.97 billion, a PE ratio of 9.07, a price-to-earnings-growth ratio of 0.23 and a beta of 1.77. StoneCo Ltd. has a 12 month low of $8.95 and a 12 month high of $19.95.

StoneCo (NASDAQ:STNE - Get Free Report) last announced its quarterly earnings data on Monday, March 2nd. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.02. StoneCo had a net margin of 15.38% and a return on equity of 21.55%. The business had revenue of $675.42 million for the quarter, compared to the consensus estimate of $704.26 million. On average, equities analysts anticipate that StoneCo Ltd. will post 1.16 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on STNE. BTIG Research reissued a "buy" rating and set a $22.00 price objective on shares of StoneCo in a research note on Tuesday, March 3rd. Zacks Research raised StoneCo from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 3rd. UBS Group lowered their target price on StoneCo from $20.00 to $19.50 and set a "buy" rating on the stock in a report on Wednesday, January 28th. Weiss Ratings raised StoneCo from a "sell (d+)" rating to a "hold (c)" rating in a research report on Thursday. Finally, The Goldman Sachs Group cut their price target on StoneCo from $22.00 to $19.00 and set a "buy" rating for the company in a report on Tuesday, January 27th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, StoneCo currently has a consensus rating of "Moderate Buy" and a consensus target price of $17.50.

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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