StoneCo Ltd. [STNE] Is Currently -5.21 below its 200 Period Moving Avg: What Does This Mean?

StoneCo Ltd. [NASDAQ: STNE] plunged by -$0.51 during the normal trading session on Tuesday and reaching a high of $9.46 during the day while it closed the day at $9.28. The company report on August 18, 2022 that Stone reports 2Q22 revenues of R$ 2.3 billion and consolidated TPV of R$ 91 billion, combined with solid profitability increase.

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The company bet all quarterly guidance lines; Adjusted net income of R$ 76 million was 48% higher vs. previous quarter on a comparable basis.

Today, August 18, StoneCo Ltd. (Nasdaq: STNE) reported its financial results for the second quarter of 2022. The highlights are net revenues of R$ 2.3 billion, 5% above the guidance, and pre-tax earnings of R$ 107 million, 19% above the guidance. Revenue growth was driven by a 101.5% year on year rise in revenues from the Financial Services segment, which reached R$ 1.9 billion, combined with a 23% increase in revenues from the Software segment, which reached R$ 351 million. The company expects to continue consistently growing revenue and expanding margins throughout 2022.

StoneCo Ltd. stock has also gained 12.35% of its value over the past 7 days. However, STNE stock has inclined by 14.43% in the 3 months of the year. Over the past six months meanwhile, it has gained 11.00% and lost -44.96% year-on date.

The market cap for STNE stock reached $2.51 billion, with 312.16 million shares outstanding and 209.08 million shares in the current float. Compared to the average trading volume of 7.59M shares, STNE reached a trading volume of 4808601 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $12.53 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.

Goldman have made an estimate for StoneCo Ltd. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on September 06, 2022. While these analysts kept the previous recommendation, Cantor Fitzgerald raised their target price to Overweight. The new note on the price target was released on April 08, 2022, representing the official price target for StoneCo Ltd. stock. Previously, the target price had yet another raise to $15, while Citigroup analysts kept a Buy rating on STNE stock. On February 18, 2022, analysts decreased their price target for STNE shares from 30 to 14.

The Average True Range (ATR) for StoneCo Ltd. is set at 0.73, with the Price to Sales ratio for STNE stock in the period of the last 12 months amounting to 1.43. The Price to Book ratio for the last quarter was 1.19, with the Price to Cash per share for the same quarter was set at 4.50. Price to Free Cash Flow for STNE in the course of the last twelve months was 4.28 with Quick ratio for the last quarter at 3.70.

STNE stock trade performance evaluation

StoneCo Ltd. [STNE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.35. With this latest performance, STNE shares dropped by -23.05% in over the last four-week period, additionally plugging by 11.00% over the last 6 months – not to mention a drop of -78.58% 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 46.80, with the RSI for the last a single of trading hit 46.97, and the three-weeks RSI is set at 47.53 for StoneCo Ltd. [STNE]. The present Moving Average for the last 50 days of trading for this stock 9.66, while it was recorded at 9.20 for the last single week of trading, and 11.51 for the last 200 days.

StoneCo Ltd. [STNE]: An insightful look at the core 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 3.70 and a Current Ratio set at 3.70.

Earnings per share (EPS) analysis for StoneCo Ltd. [STNE] stock

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 Ownership positions

There are presently around $1,738 million, or 68.40% of STNE stock, in the hands of institutional investors. The top three institutional holders of STNE stocks are: BLACKROCK INC. with ownership of 16,785,336, which is approximately 154.513% 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 $99.25 million in STNE stocks shares; and NIKKO ASSET MANAGEMENT AMERICAS, INC., currently with $88.89 million in STNE stock with ownership of nearly 2.283% of the company’s market capitalization.

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 150 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 45,825,478 shares. Additionally, 141 investors decreased positions by around 42,257,447 shares, while 38 investors held positions by with 99,232,334 shares. The mentioned changes placed institutional holdings at 187,315,259 shares, according to the latest SEC report filing. STNE stock had 44 new institutional investments in for a total of 2,764,647 shares, while 65 institutional investors sold positions of 15,892,215 shares during the same period.


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