StoneCo (NASDAQ:STNE) Price Target Raised to $25.00 at Bank of America

Key Points

• Bank of America raised its price target for StoneCo from $15.00 to $25.00, indicating a potential upside of 39.55% from its current stock price.
• Other brokerages have also increased their ratings and prices for StoneCo, with JPMorgan raising their target to $18.50 and UBS to $20.00, contributing to a generally positive outlook.
• StoneCo's recent quarterly earnings beat expectations with an EPS of $0.39, despite reporting revenue of $643.82 million against analyst estimates significantly higher at $3.78 billion.

StoneCo (NASDAQ:STNE - Get Free Report) had its price target raised by equities research analysts at Bank of America from $15.00 to $25.00 in a report issued on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Bank of America's price objective suggests a potential upside of 39.55% from the company's current price.

Several other brokerages have also issued reports on STNE. JPMorgan Chase & Co. upped their target price on StoneCo from $15.50 to $18.50 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. UBS Group increased their target price on shares of StoneCo from $15.00 to $20.00 and gave the stock a "buy" rating in a report on Friday, August 29th. Wall Street Zen downgraded shares of StoneCo from a "buy" rating to a "hold" rating in a research report on Friday, June 6th. Zacks Research raised shares of StoneCo to a "strong-buy" rating in a research note on Tuesday, August 12th. Finally, Santander upgraded StoneCo from a "neutral" rating to an "outperform" rating in a report on Wednesday, May 21st. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $16.56.

StoneCo Stock Performance

STNE traded up $0.66 during midday trading on Tuesday, reaching $17.92. The company had a trading volume of 2,730,880 shares, compared to its average volume of 5,901,662. The stock has a market cap of $5.12 billion, a PE ratio of -25.59, a P/E/G ratio of 0.46 and a beta of 1.91. StoneCo has a 12-month low of $7.72 and a 12-month high of $17.95. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.48 and a current ratio of 1.48. The business has a 50-day moving average price of $15.00 and a two-hundred day moving average price of $13.29.

StoneCo (NASDAQ:STNE - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.03. StoneCo had a negative net margin of 8.37% and a positive return on equity of 18.71%. The company had revenue of $643.82 million for the quarter, compared to analyst estimates of $3.78 billion. On average, sell-side analysts expect that StoneCo will post 1.16 earnings per share for the current fiscal year.

Institutional Investors Weigh In On StoneCo

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Richardson Financial Services Inc. purchased a new stake in shares of StoneCo during the second quarter worth about $29,000. Farther Finance Advisors LLC boosted its stake in StoneCo by 334.4% in the 2nd quarter. Farther Finance Advisors LLC now owns 2,598 shares of the company's stock worth $42,000 after purchasing an additional 2,000 shares during the period. GAMMA Investing LLC grew its holdings in StoneCo by 1,486.3% during the 1st quarter. GAMMA Investing LLC now owns 2,903 shares of the company's stock valued at $30,000 after buying an additional 2,720 shares in the last quarter. CWM LLC raised its position in shares of StoneCo by 327.4% during the first quarter. CWM LLC now owns 3,154 shares of the company's stock valued at $33,000 after buying an additional 2,416 shares during the last quarter. Finally, Harbor Capital Advisors Inc. raised its position in shares of StoneCo by 143.0% during the first quarter. Harbor Capital Advisors Inc. now owns 4,614 shares of the company's stock valued at $48,000 after buying an additional 2,715 shares during the last quarter. 73.19% of the stock is owned by institutional investors.

About StoneCo

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team.

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