StoneCo (NASDAQ:STNE) Reaches New 12-Month Low - What's Next?

Key Points

• StoneCo shares hit a new 52-week low, trading as low as $8.98 and below both their 50-day and 200-day moving averages. The stock has a $2.30 billion market capitalization and a beta of 1.75.
• Analyst sentiment is cautious: the consensus rating is “Hold” from 10 analysts, with an average price target of $14.30. UBS lowered its target to $13, while Bank of America downgraded the stock to neutral.
• StoneCo slightly exceeded quarterly EPS expectations, reporting $0.47 versus the $0.46 consensus estimate, while institutional investors collectively own 73.19% of the company.

StoneCo Ltd. (NASDAQ:STNE - Get Free Report) shares reached a new 52-week low on Thursday. The stock traded as low as $8.98 and last traded at $9.0350, with a volume of 1106686 shares. The stock had previously closed at $9.34.

Analyst Ratings Changes

Several brokerages have recently commented on STNE. UBS Group dropped their target price on shares of StoneCo from $15.00 to $13.00 and set a "buy" rating for the company in a research report on Friday, August 28th. Weiss Ratings reissued a "hold (c-)" rating on shares of StoneCo in a research note on Monday, September 14th. Bank of America downgraded shares of StoneCo from a "buy" rating to a "neutral" rating and set a $13.00 price objective for the company. in a research report on Wednesday, July 15th. Finally, Jefferies Financial Group initiated coverage on StoneCo in a research note on Thursday, July 23rd. They set a "hold" rating and a $12.60 target price for the company. Four equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $14.30.

StoneCo Stock Performance

The stock has a fifty day simple moving average of $10.05 and a two-hundred day simple moving average of $11.33. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.26 and a current ratio of 1.26. The stock has a market capitalization of $2.30 billion, a price-to-earnings ratio of 3.73, a P/E/G ratio of 0.26 and a beta of 1.75.

StoneCo (NASDAQ:STNE - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.01. The firm had revenue of $129.73 million for the quarter, compared to analysts' expectations of $708.24 million. StoneCo had a return on equity of 22.19% and a net margin of 22.92%. Analysts forecast that StoneCo Ltd. will post 2.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other StoneCo news, Director Silvio Morais sold 21,000 shares of the firm's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $9.91, for a total value of $208,110.00. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 11.25% of the company's stock.

Institutional Investors Weigh In On StoneCo

Institutional investors and hedge funds have recently made changes to their positions in the business. Rockefeller Capital Management L.P. increased its holdings 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 in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of StoneCo by 77.4% in the first quarter. EverSource Wealth Advisors LLC now owns 2,705 shares of the company's stock valued at $38,000 after purchasing an additional 1,180 shares in the last quarter. Versant Capital Management Inc boosted its position in shares of StoneCo by 54.4% during the second quarter. Versant Capital Management Inc now owns 3,032 shares of the company's stock valued at $33,000 after buying an additional 1,068 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of StoneCo by 274.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,184 shares of the company's stock valued at $47,000 after buying an additional 2,333 shares during the last quarter. Finally, Summit Securities Group LLC purchased a new position in shares of StoneCo during the first quarter valued at approximately $61,000. Institutional investors and hedge funds own 73.19% of the company's stock.

StoneCo Company Profile

StoneCo Ltd. is a Brazilian financial technology company that provides payment processing, banking and business-management solutions to entrepreneurs and small and medium-sized businesses. Its services are designed to help merchants accept electronic payments, manage cash flow and operate their businesses through integrated digital tools.

The company's offerings include point-of-sale and mobile payment solutions, online payment processing, digital banking services, working-capital and credit products, and software for retail and other business operations.

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