StoneCo Ltd. [STNE] is -31.97% lower this YTD. Is it still time to buy?

StoneCo Ltd. [NASDAQ: STNE] traded at a high on 07/28/21, posting a 2.92 gain after which it closed the day’ session at $57.09. The company report on July 16, 2021 that StoneCo Ltd. Announces New Member of the Board of Directors.

StoneCo Ltd. (NASDAQ: STNE) (“Stone”) announced that pursuant to written resolutions of its Board of Directors dated July 5, 2021, Mr. Diego Fresco Gutierrez was appointed to the Board of Directors, effective immediately.

Diego Fresco Gutierrez graduated in Accounting in 1994 at Universidad de la República Oriental del Uruguay. Diego is a Certified Public Accountant registered in the state of Virginia and an Accountant registered with the Conselho Regional de Contabilidade – SP in Brazil. He is currently a member of the Audit Committee of Votorantim Cimentos S.A. and of Itau Corpbanca Chile (NYSE: ITCB), where he also is an alternate director, and of Itau Corpbanca Colombia. Between 2014 and 2021, he was a member and financial specialist of the Audit Committee of Itaú Unibanco Holding. Previously, he was a partner at PricewaterhouseCoopers in São Paulo (2000-2013). Between 1998 and 2000, he held various positions at PricewaterhouseCoopers in Uruguay and in the United States. Since 2013, he is a member of the Commission on Governance of Financial Institutions of the IBGC.

The results of the trading session contributed to over 2885366 shares changing hands. Over the past one week, the price volatility of StoneCo Ltd. stands at 4.34% while the volatility over the past one month is 3.77%.

The market cap for STNE stock reached $17.44 billion, with 309.62 million shares outstanding and 220.03 million shares in the current float. Compared to the average trading volume of 2.42M shares, STNE reached a trading volume of 2885366 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $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 2.41, with the Price to Sales ratio for STNE stock in the period of the last 12 months amounting to 26.22. The Price to Book ratio for the last quarter was 6.00, with the Price to Cash per share for the same quarter was set at 6.63.

How has STNE stock performed recently?

StoneCo Ltd. [STNE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.73. With this latest performance, STNE shares dropped by -15.93% in over the last four-week period, additionally sinking by -17.81% over the last 6 months – not to mention a rise of 29.05% 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 38.18, with the RSI for the last a single of trading hit 37.00, and the three-weeks RSI is set at 31.75 for StoneCo Ltd. [STNE], while it was recorded at 57.49 for the last single week of trading.

StoneCo Ltd. [STNE]: Deeper insight into the 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.

Earnings analysis for StoneCo Ltd. [STNE]

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%.

Insider trade positions for StoneCo Ltd. [STNE]

There are presently around $11,177 million, or 78.00% 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 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 $1.59 billion in STNE stocks shares; and BLACKROCK INC., currently with $652.18 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 197 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 26,845,434 shares. Additionally, 163 investors decreased positions by around 21,473,918 shares, while 37 investors held positions by with 147,461,612 shares. The mentioned changes placed institutional holdings at 195,780,964 shares, according to the latest SEC report filing. STNE stock had 65 new institutional investments in for a total of 8,145,103 shares, while 69 institutional investors sold positions of 5,920,625 shares during the same period.

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