StoneCo Ltd. [STNE] Revenue clocked in at $1.28 billion, down -30.01% YTD: What’s Next?


StoneCo Ltd. [NASDAQ: STNE] jumped around 1.38 points on Friday, while shares priced at $11.80 at the close of the session, up 13.24%. The company report on June 2, 2022 that Stone accelerates growth, recovering profitability, and reports record revenue of BRL 2.07 billion in 1Q22, with 138.6% increase year over year.

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Company exceeds forecasts with pre-tax earnings 16% above guidance and 10 times higher than in previous quarter .

StoneCo Ltd (Nasdaq: STNE) total revenues reached BRL 2.07 billion in 2022’s first quarter, a 138.6% increase over the same period in 2021. The figures exceeded BRL 1.85 to BRL 1.90 billion guidance due to a 107.8% increase in revenues from Financial Services to BRL1.7 billion in the period, and 955.6% increase in Software to BRL 326.6 million in this quarter.

StoneCo Ltd. stock is now -30.01% down from its year-to-date (YTD) trading value. STNE Stock saw the intraday high of $11.88 and lowest of $10.7657 per share. The company’s 52-week high price is 71.08, which means current price is +73.22% above from all time high which was touched on 01/03/22.

Compared to the average trading volume of 9.32M shares, STNE reached a trading volume of 30984605 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 $16.68 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 2.70. 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.

Cantor Fitzgerald have made an estimate for StoneCo Ltd. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on April 08, 2022. The new note on the price target was released on March 18, 2022, representing the official price target for StoneCo Ltd. stock. Previously, the target price had yet another drop from $30 to $14, while Evercore ISI kept a In-line rating on STNE stock. On January 31, 2022, analysts decreased their price target for STNE shares from 60 to 16.

The Average True Range (ATR) for StoneCo Ltd. is set at 0.82, with the Price to Sales ratio for STNE stock in the period of the last 12 months amounting to 2.54. The Price to Book ratio for the last quarter was 1.29, with the Price to Cash per share for the same quarter was set at 4.91. Price to Free Cash Flow for STNE in the course of the last twelve months was 6.18 with Quick ratio for the last quarter at 1.30.

How has STNE stock performed recently?

StoneCo Ltd. [STNE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 21.52. With this latest performance, STNE shares gained by 18.12% in over the last four-week period, additionally sinking by -26.30% over the last 6 months – not to mention a drop of -81.60% 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 65.85, with the RSI for the last a single of trading hit 73.69, and the three-weeks RSI is set at 60.00 for StoneCo Ltd. [STNE]. The present Moving Average for the last 50 days of trading for this stock 10.13, while it was recorded at 10.45 for the last single week of trading, and 20.94 for the last 200 days.

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 -31.16 and a Gross Margin at +28.78. StoneCo Ltd.’s Net Margin is presently recorded at -50.35.

Return on Equity for this stock declined to -9.53, with Return on Assets sitting at -3.69.

StoneCo Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

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 $2,176 million, or 67.10% of STNE stock, in the hands of institutional investors. The top three institutional holders of STNE stocks are: CAPITAL RESEARCH GLOBAL INVESTORS with ownership of 13,262,194, which is approximately -64.302% of the company’s market cap and around 12.74% of the total institutional ownership; BERKSHIRE HATHAWAY INC, holding 10,695,448 shares of the stock with an approximate value of $126.21 million in STNE stocks shares; and NIKKO ASSET MANAGEMENT AMERICAS, INC., currently with $110.5 million in STNE stock with ownership of nearly 0.192% of the company’s market capitalization.

Positions in StoneCo Ltd. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 178 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 61,306,488 shares. Additionally, 139 investors decreased positions by around 56,776,510 shares, while 28 investors held positions by with 66,312,849 shares. The mentioned changes placed institutional holdings at 184,395,847 shares, according to the latest SEC report filing. STNE stock had 73 new institutional investments in for a total of 24,731,323 shares, while 63 institutional investors sold positions of 11,262,593 shares during the same period.