StoneCo (NASDAQ:STNE) Sets New 52-Week High - Still a Buy?

Key Points

• StoneCo Ltd. reached a new 52-week high at $16.72, with significant trading volume of over 1.24 million shares, indicating strong market interest.
• Analysts have varied opinions on the stock, with Zacks Research rating it as a "strong-buy" while Wall Street Zen downgraded it to a "hold", leading to a consensus rating of "Moderate Buy".
• The company reported earnings of $0.39 per share for the last quarter, beating expectations despite reporting a revenue significantly lower than analyst forecasts.

StoneCo Ltd. (NASDAQ:STNE - Get Free Report)'s stock price reached a new 52-week high on Thursday . The stock traded as high as $16.72 and last traded at $16.69, with a volume of 1243972 shares trading hands. The stock had previously closed at $15.92.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Zacks Research raised StoneCo to a "strong-buy" rating in a research note on Tuesday, August 12th. Barclays lifted their price target on StoneCo from $13.00 to $15.00 and gave the company an "equal weight" rating in a research note on Monday, May 12th. Wall Street Zen lowered StoneCo from a "buy" rating to a "hold" rating in a research note on Friday, June 6th. JPMorgan Chase & Co. lifted their price target on StoneCo from $15.50 to $18.50 and gave the company an "overweight" rating in a research note on Wednesday, July 16th. Finally, Santander raised StoneCo from a "neutral" rating to an "outperform" rating in a research note on Wednesday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $15.07.

StoneCo Stock Performance

The stock has a market cap of $4.76 billion, a P/E ratio of -23.79, a P/E/G ratio of 0.42 and a beta of 1.88. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.48 and a quick ratio of 1.48. The company has a fifty day moving average price of $14.77 and a 200 day moving average price of $12.86.

StoneCo (NASDAQ:STNE - Get Free Report) last announced its 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. The company had revenue of $643.82 million for the quarter, compared to analysts' expectations of $3.78 billion. StoneCo had a positive return on equity of 18.71% and a negative net margin of 8.37%. On average, equities analysts expect that StoneCo Ltd. will post 1.16 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Signaturefd LLC lifted its position in shares of StoneCo by 10.2% during the 2nd quarter. Signaturefd LLC now owns 8,492 shares of the company's stock valued at $136,000 after buying an additional 784 shares during the last quarter. Xponance Inc. boosted its holdings in shares of StoneCo by 4.7% in the 1st quarter. Xponance Inc. now owns 21,762 shares of the company's stock worth $228,000 after purchasing an additional 981 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of StoneCo by 13.0% in the 2nd quarter. PNC Financial Services Group Inc. now owns 9,577 shares of the company's stock worth $154,000 after purchasing an additional 1,104 shares in the last quarter. Neuberger Berman Group LLC boosted its holdings in StoneCo by 6.6% during the 2nd quarter. Neuberger Berman Group LLC now owns 18,399 shares of the company's stock valued at $295,000 after acquiring an additional 1,140 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in StoneCo by 43.6% in the 2nd quarter. GAMMA Investing LLC now owns 4,170 shares of the company's stock worth $67,000 after buying an additional 1,267 shares during the period. Hedge funds and other institutional investors own 73.19% of the company's stock.

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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