JPMorgan Chase & Co. Lowers StoneCo (NASDAQ:STNE) Price Target to $20.00

Key Points

• JPMorgan cut its StoneCo price target from $21.00 to $20.00 while maintaining an "overweight" rating, a target the firm says implies about a 34% upside from the stock's prior close.
• Analysts are mixed but generally positive: StoneCo has a consensus rating of "Moderate Buy" (six Buys, four Holds) and a consensus target of $19.29, while the stock traded around $14.91, well below its 52-week high of $19.95.
• Recent quarterly results showed a modest EPS beat ($0.50 vs. $0.48) but missed revenue expectations ($675.4M vs. $704.3M); the company has a PE of 9.74, ROE of 21.6%, and about 73% institutional ownership.

StoneCo (NASDAQ:STNE - Get Free Report) had its target price decreased by research analysts at JPMorgan Chase & Co. from $21.00 to $20.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 34.18% from the stock's previous close.

STNE has been the topic of a number of other reports. BTIG Research reiterated a "buy" rating and set a $22.00 target price on shares of StoneCo in a report on Tuesday, March 3rd. Weiss Ratings upgraded shares of StoneCo from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, March 5th. Zacks Research upgraded 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. Finally, 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. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, StoneCo currently has a consensus rating of "Moderate Buy" and a consensus target price of $19.29.

StoneCo Price Performance

NASDAQ STNE traded up $0.30 during trading hours on Wednesday, hitting $14.91. 6,925,947 shares of the company's stock traded hands, compared to its average volume of 5,283,770. The firm's 50-day moving average is $15.13 and its 200-day moving average is $15.95. StoneCo has a 52-week low of $11.72 and a 52-week high of $19.95. 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 capitalization of $4.26 billion, a PE ratio of 9.74, a PEG ratio of 0.33 and a beta of 1.89.

StoneCo (NASDAQ:STNE - Get Free Report) last posted its quarterly earnings results on Tuesday, March 3rd. The company reported $0.50 earnings per share 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 during the quarter, compared to analysts' expectations of $704.26 million. Equities analysts forecast that StoneCo will post 1.16 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Hsbc Holdings PLC purchased a new position in shares of StoneCo in the 4th quarter valued at $626,000. Rockefeller Capital Management L.P. grew its position in StoneCo by 74.1% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,199 shares of the company's stock worth $33,000 after purchasing an additional 936 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its position in StoneCo by 274.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,184 shares of the company's stock worth $47,000 after purchasing an additional 2,333 shares during the last quarter. Virtu Financial LLC purchased a new position in StoneCo during the 4th quarter worth $215,000. Finally, Invesco Ltd. grew its position in StoneCo by 10.8% during the 4th quarter. Invesco Ltd. now owns 282,453 shares of the company's stock worth $4,177,000 after purchasing an additional 27,637 shares during the last quarter. 73.19% of the stock is owned by hedge funds and other institutional investors.

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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