StoneCo Ltd. [STNE] fell -24.65% so far this year. What now?

StoneCo Ltd. [NASDAQ: STNE] price plunged by -1.66 percent to reach at -$1.07. The company report on June 17, 2021 that Brazilian Antitrust Authority (CADE) Unanimously Approves Business Combination Between Stone and Linx With No Restrictions.

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StoneCo Ltd. (Nasdaq: STNE) (“Stone”), a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels, announces that CADE, the Brazilian antitrust authority, unanimously approved, on this date, 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”), with no restrictions.

Stone believes that the business combination with Linx represents a significant value creation opportunity for all stakeholders, including clients, shareholders and employees and will help accelerate Stone’s mission of empowering Brazilian merchants of all sizes to manage their businesses more effectively through technology.

A sum of 2914729 shares traded at recent session while its average daily volume was at 2.09M shares. StoneCo Ltd. shares reached a high of $64.70 and dropped to a low of $62.45 until finishing in the latest session at $63.23.

The one-year STNE stock forecast points to a potential upside of 28.66. The average equity rating for STNE stock is currently 2.20, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on 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 $88.63 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 2.20. 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.

Citigroup have made an estimate for StoneCo Ltd. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 13, 2021. The new note on the price target was released on March 12, 2021, representing the official price target for StoneCo Ltd. stock. Previously, the target price had yet another raise to $100, while Credit Suisse analysts kept a Outperform rating on STNE stock.

The Average True Range (ATR) for StoneCo Ltd. is set at 2.25, with the Price to Sales ratio for STNE stock in the period of the last 12 months amounting to 30.05. The Price to Book ratio for the last quarter was 6.71, with the Price to Cash per share for the same quarter was set at 6.41.

STNE Stock Performance Analysis:

StoneCo Ltd. [STNE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.56. With this latest performance, STNE shares gained by 0.30% in over the last four-week period, additionally sinking by -21.05% over the last 6 months – not to mention a rise of 58.71% in the past year of trading.

Insight into StoneCo Ltd. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and StoneCo Ltd. [STNE] shares currently have an operating margin of -8.89 and a Gross Margin at +43.61. StoneCo Ltd.’s Net Margin is presently recorded at +55.74.

Return on Total Capital for STNE is now -0.73, given the latest momentum, and Return on Invested Capital for the company is 6.21. Return on Equity for this stock inclined to 7.62, with Return on Assets sitting at 3.01. When it comes to the capital structure of this company, StoneCo Ltd. [STNE] has a Total Debt to Total Equity ratio set at 40.96. Additionally, STNE Total Debt to Total Capital is recorded at 29.06, with Total Debt to Total Assets ending up at 19.16. Long-Term Debt to Equity for the company is recorded at 19.79, with the Long-Term Debt to Total Capital now at 14.04.

Reflecting on the efficiency of the workforce at the company, StoneCo Ltd. [STNE] managed to generate an average of $22,873 per employee. Receivables Turnover for the company is 0.08 with a Total Asset Turnover recorded at a value of 0.05.StoneCo Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.20.

STNE Stock EPS

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%.

StoneCo Ltd. [STNE] Insider Position Details

There are presently around $12,371 million, or 77.20% 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 33,517,477, which is approximately 6.799% of the company’s market cap and around 16.91% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 27,894,970 shares of the stock with an approximate value of $1.76 billion in STNE stocks shares; and BLACKROCK INC., currently with $722.32 million in STNE stock with ownership of nearly 17.694% of the company’s market capitalization.

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Positions in StoneCo Ltd. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 201 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 27,165,596 shares. Additionally, 163 investors decreased positions by around 21,157,481 shares, while 33 investors held positions by with 147,330,321 shares. The mentioned changes placed institutional holdings at 195,653,398 shares, according to the latest SEC report filing. STNE stock had 63 new institutional investments in for a total of 8,430,217 shares, while 72 institutional investors sold positions of 5,922,371 shares during the same period.

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