StoneCo (NASDAQ:STNE) Stock Price Down 4.4% – Here’s Why

StoneCo Ltd. (NASDAQ:STNE)’s stock price was down 4.4% during trading on Tuesday . The stock traded as low as $10.79 and last traded at $10.84. Approximately 1,716,985 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 5,073,218 shares. The stock had previously closed at $11.34.

Wall Street Analyst Weigh In

STNE has been the subject of several analyst reports. UBS Group upped their target price on StoneCo from $17.00 to $18.00 and gave the stock a “buy” rating in a research report on Thursday, August 29th. Barclays decreased their price target on StoneCo from $14.00 to $13.00 and set an “equal weight” rating for the company in a report on Tuesday, October 15th. Cantor Fitzgerald upgraded shares of StoneCo to a “strong-buy” rating in a research note on Thursday, October 3rd. Finally, Morgan Stanley restated an “underweight” rating and issued a $7.00 target price (down from $16.50) on shares of StoneCo in a research note on Thursday, September 5th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $17.70.

StoneCo Trading Down 1.4 %

The firm has a market cap of $3.51 billion, a P/E ratio of 9.36, a price-to-earnings-growth ratio of 0.40 and a beta of 2.29. The business’s 50 day moving average is $11.52 and its 200-day moving average is $12.97. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.41.

StoneCo (NASDAQ:STNE) last released its earnings results on Wednesday, August 14th. The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.04). StoneCo had a return on equity of 13.21% and a net margin of 15.27%. The company had revenue of $615.13 million during the quarter, compared to the consensus estimate of $590.74 million. As a group, analysts forecast that StoneCo Ltd. will post 1.21 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Central Bank & Trust Co. acquired a new stake in shares of StoneCo during the 2nd quarter valued at approximately $40,000. Lazard Asset Management LLC bought a new stake in StoneCo during the first quarter valued at $41,000. Y.D. More Investments Ltd raised its holdings in shares of StoneCo by 90.2% during the second quarter. Y.D. More Investments Ltd now owns 4,798 shares of the company’s stock worth $58,000 after purchasing an additional 2,275 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd bought a new position in shares of StoneCo in the 3rd quarter worth about $125,000. Finally, Point72 Hong Kong Ltd acquired a new position in shares of StoneCo in the 2nd quarter valued at about $135,000. Institutional investors own 73.19% of the company’s stock.

StoneCo Company Profile

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.