StoneCo Ltd. [NASDAQ: STNE] loss -3.53% or -2.59 points to close at $70.72 with a heavy trading volume of 2123748 shares. The company report on November 18, 2020 that Linx Extraordinary General Meeting Approves Business Combination With Stone.
StoneCo Ltd. (Nasdaq: STNE) (“Stone”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, announces that the Linx Extraordinary General Meeting held on this date approved the business combination between STNE Participações S.A. (“STNE”), a controlled company of Stone that holds the software investments business of the Stone group in Brazil and Linx S.A. (B3: LINX3; NYSE: LINX) (“Linx”), a leading provider of retail management software in Brazil (“Transaction”).
The Linx Extraordinary General meeting (“ESM”) held deliberated on Stone’s Transaction and voted in favor of the following:.
It opened the trading session at $72.20, the shares rose to $72.51 and dropped to $70.32, the range by which the price of stock traded the whole day. The daily chart for STNE points out that the company has recorded 94.77% gains over the past six months. However, it is still -299.1% lower than its most recent low trading price.
If we look at the average trading volume of 2.24M shares, STNE reached to a volume of 2123748 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about StoneCo Ltd. [STNE]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STNE shares is $56.12 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STNE stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Susquehanna have made an estimate for StoneCo Ltd. shares, keeping their opinion on the stock as Positive, with their previous recommendation back on October 23, 2020. While these analysts kept the previous recommendation, UBS raised their target price from $46 to $54. The new note on the price target was released on August 26, 2020, representing the official price target for StoneCo Ltd. stock.
The Average True Range (ATR) for StoneCo Ltd. is set at 2.80 The Price to Book ratio for the last quarter was 7.61, with the Price to Cash per share for the same quarter was set at 6.56.
Trading performance analysis for STNE stock
StoneCo Ltd. [STNE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.56. With this latest performance, STNE shares gained by 33.56% in over the last four-week period, additionally plugging by 94.77% over the last 6 months – not to mention a rise of 86.84% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for STNE stock in for the last two-week period is set at 64.89, with the RSI for the last a single of trading hit 60.74, and the three-weeks RSI is set at 64.95 for StoneCo Ltd. [STNE]. The present Moving Average for the last 50 days of trading for this stock 60.34, while it was recorded at 72.21 for the last single week of trading, and 42.81 for the last 200 days.
StoneCo Ltd. [STNE]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and StoneCo Ltd. [STNE] shares currently have an operating margin of +2.58 and a Gross Margin at +55.50. StoneCo Ltd.’s Net Margin is presently recorded at +72.90.
Return on Total Capital for STNE is now 0.28, given the latest momentum, and Return on Invested Capital for the company is 10.85. Return on Equity for this stock inclined to 14.55, with Return on Assets sitting at 4.90. When it comes to the capital structure of this company, StoneCo Ltd. [STNE] has a Total Debt to Total Equity ratio set at 112.96. Additionally, STNE Total Debt to Total Capital is recorded at 53.04, with Total Debt to Total Assets ending up at 34.41. Long-Term Debt to Equity for the company is recorded at 28.59, with the Long-Term Debt to Total Capital now at 13.43.
Reflecting on the efficiency of the workforce at the company, StoneCo Ltd. [STNE] managed to generate an average of $34,291 per employee. Receivables Turnover for the company is 0.09 with a Total Asset Turnover recorded at a value of 0.07.StoneCo Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.30.
StoneCo Ltd. [STNE]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, StoneCo Ltd. posted 0.18/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 12.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for STNE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for StoneCo Ltd. go to 4.11%.
An analysis of insider ownership at StoneCo Ltd. [STNE]
There are presently around $12,039 million, or 81.00% of STNE stock, in the hands of institutional investors. The top three institutional holders of STNE stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 34,249,107, which is approximately -0.163% of the company’s market cap and around 11.16% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 28,222,613 shares of the stock with an approximate value of $2.0 billion in STNE stocks shares; and BERKSHIRE HATHAWAY INC, currently with $1.0 billion in STNE stock with ownership of nearly 0% of the company’s market capitalization.
Positions in StoneCo Ltd. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 166 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 38,516,907 shares. Additionally, 97 investors decreased positions by around 8,504,197 shares, while 24 investors held positions by with 123,206,838 shares. The mentioned changes placed institutional holdings at 170,227,942 shares, according to the latest SEC report filing. STNE stock had 62 new institutional investments in for a total of 18,430,924 shares, while 35 institutional investors sold positions of 3,134,193 shares during the same period.