Coronation Fund Managers Ltd. Buys 1,043,464 Shares of StoneCo Ltd. $STNE

Key Points

• Coronation Fund Managers increased its stake in StoneCo by 71.7% in Q4, buying 1,043,464 shares to hold 2,499,733 shares worth about $36.97 million, representing roughly 1.7% of Coronation's portfolio and 0.87% of StoneCo.
• StoneCo shares recently traded down about 16%; the stock opened at $12.22 (52‑week range $11.74–$19.95), has a market cap of $3.5B and a P/E of 7.99, and the company reported EPS of $0.50 (beat $0.48) while revenue missed estimates.
• The company declared a special dividend of $2.53 (record/ex‑dividend on Apr 24, payable May 4), and analysts hold a consensus Moderate Buy rating with a $20 price target amid ~73% institutional ownership.

Coronation Fund Managers Ltd. lifted its stake in shares of StoneCo Ltd. (NASDAQ:STNE - Free Report) by 71.7% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,499,733 shares of the company's stock after purchasing an additional 1,043,464 shares during the quarter. StoneCo accounts for about 1.7% of Coronation Fund Managers Ltd.'s portfolio, making the stock its 17th largest position. Coronation Fund Managers Ltd. owned about 0.87% of StoneCo worth $36,971,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Qube Research & Technologies Ltd bought a new stake in StoneCo during the 3rd quarter worth approximately $58,017,000. Ninety One UK Ltd grew its holdings in StoneCo by 218.4% during the 3rd quarter. Ninety One UK Ltd now owns 4,234,251 shares of the company's stock worth $80,070,000 after acquiring an additional 2,904,432 shares during the last quarter. Ninety One North America Inc. grew its holdings in StoneCo by 237.3% during the 3rd quarter. Ninety One North America Inc. now owns 1,593,080 shares of the company's stock worth $30,125,000 after acquiring an additional 1,120,715 shares during the last quarter. Man Group plc bought a new stake in StoneCo during the 2nd quarter worth approximately $13,329,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in StoneCo by 91.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,431,208 shares of the company's stock worth $27,064,000 after acquiring an additional 684,332 shares during the last quarter. 73.19% of the stock is owned by institutional investors.

StoneCo Trading Down 16.0%

NASDAQ:STNE opened at $12.22 on Friday. The firm's fifty day moving average is $14.76 and its 200-day moving average is $15.78. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.43 and a current ratio of 1.37. StoneCo Ltd. has a 52 week low of $11.74 and a 52 week high of $19.95. The firm has a market cap of $3.50 billion, a P/E ratio of 7.99, a P/E/G ratio of 0.31 and a beta of 1.89.

StoneCo (NASDAQ:STNE - Get Free Report) last posted its quarterly earnings data on Tuesday, March 3rd. The company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.02. StoneCo had a net margin of 15.38% and a return on equity of 21.55%. The company had revenue of $675.42 million for the quarter, compared to analyst estimates of $704.26 million. Equities analysts expect that StoneCo Ltd. will post 1.99 earnings per share for the current year.

StoneCo Dividend Announcement

The company also recently disclosed a special dividend, which will be paid on Monday, May 4th. Stockholders of record on Friday, April 24th will be paid a $2.53 dividend. The ex-dividend date of this dividend is Friday, April 24th.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on STNE. Zacks Research raised shares of StoneCo from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 3rd. The Goldman Sachs Group reduced their target price on shares of StoneCo from $22.00 to $19.00 and set a "buy" rating on the stock in a report on Tuesday, January 27th. JPMorgan Chase & Co. reduced their target price on shares of StoneCo from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Wednesday, April 15th. UBS Group reduced their target price on shares of StoneCo from $19.50 to $19.00 and set a "buy" rating on the stock in a report on Wednesday, March 11th. Finally, Weiss Ratings raised shares of StoneCo from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, March 5th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, StoneCo presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

StoneCo Company 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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