StoneCo: Unjustified Dip In 2024 Makes It A Buy
StoneCo is a Brazilian fintech company focused on MSMBs, offering financial services and software solutions. The company demonstrates consistent growth across all key financial and operating metrics. The management's long-term outlook is quite optimistic as well. My valuation analysis suggests there is a 73% upside potential from the current share price levels.
StoneCo Ltd. (NASDAQ:STNE) Shares Purchased by Private Advisor Group LLC
Private Advisor Group LLC boosted its holdings in StoneCo Ltd. (NASDAQ:STNE – Free Report) by 4.2% during the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 32,874 shares of the company’s stock after buying an additional 1,329 shares during the period. Private Advisor Group LLC’s holdings in StoneCo were worth $593,000 at the end of the most recent reporting period. Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Qube Research & Technologies Ltd lifted its holdings in shares of StoneCo by 103.8% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,234,520 shares of the company’s stock valued at $13,172,000 after acquiring an additional 628,698 shares in the last quarter. Nucleo Capital LTDA. lifted its stake in shares of StoneCo by 10.0% during the third quarter. Nucleo Capital LTDA. now owns 6,138,276 shares of the company’s stock worth $65,495,000 after purchasing an additional 557,186 shares in the last quarter. Principal Financial Group Inc. boosted its position in shares of StoneCo by 266.4% in the third quarter. Principal Financial Group Inc. now owns 635,411 shares of the company’s stock worth $6,780,000 after buying an additional 461,984 shares during the period. Canada Pension Plan Investment Board grew its stake in shares of StoneCo by 121.6% in the third quarter. Canada Pension Plan Investment Board now owns 776,180 shares of the company’s stock valued at $8,282,000 after buying an additional 425,880 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of StoneCo by 17.5% during the 3rd quarter. Vanguard Group Inc. now owns 2,672,681 shares of the company’s stock valued at $28,518,000 after buying an additional 397,101 shares during the period. 73.19% of the stock is owned by institutional investors and hedge funds. Wall Street Analyst Weigh In Several analysts have issued reports on the stock. Susquehanna lowered their price objective on shares of StoneCo from $23.00 to $22.00 and set a “positive” rating for the company in a research report on Friday, April 19th. The Goldman Sachs Group raised shares of StoneCo from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $12.00 to $21.00 in a research note on Monday, January 22nd. Citigroup lifted their price target on shares of StoneCo from $19.00 to $20.00 and gave the stock a “buy” rating in a research note on Wednesday, March 20th. UBS Group downgraded shares of StoneCo from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $18.00 to $21.00 in a research note on Thursday, February 1st. Finally, Barclays dropped their price target on shares of StoneCo from $18.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Monday, April 29th. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $19.00. Get Our Latest Research Report on StoneCo StoneCo Trading Down 0.9 % StoneCo stock opened at $14.63 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.36 and a debt-to-equity ratio of 0.25. The firm has a 50-day moving average price of $16.31 and a two-hundred day moving average price of $16.25. The firm has a market capitalization of $4.60 billion, a price-to-earnings ratio of 13.18, a PEG ratio of 0.53 and a beta of 2.39. StoneCo Ltd. has a 52-week low of $9.34 and a 52-week high of $19.46. StoneCo (NASDAQ:STNE – Get Free Report) last posted its earnings results on Monday, March 18th. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.04. The firm had revenue of $655.87 million during the quarter, compared to analyst estimates of $468.47 million. StoneCo had a net margin of 14.08% and a return on equity of 12.35%. Sell-side analysts expect that StoneCo Ltd. will post 1.28 earnings per share for the current year. StoneCo Company Profile (Free Report) 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.
StoneCo (STNE) Upgraded to Buy: What Does It Mean for the Stock?
StoneCo (STNE) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
