StoneCo Ltd. [STNE] stock Downgrade by Goldman analyst, price target now $7.80

StoneCo Ltd. [NASDAQ: STNE] price surged by 16.82 percent to reach at $1.66. The company report on November 17, 2022 that StoneCo doubles profitability and grows revenue by 71% to R$ 2.5 billion in 3Q22.


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R$ 211 million adjusted EBT up +97% over 2Q22, exceeding guidance by 69%.

With net addition of 248,000 MSMB clients in 3Q22, company accelerates its growth and reaches 2.4 million clients, with market share gains in payments.

A sum of 16927515 shares traded at recent session while its average daily volume was at 6.57M shares. StoneCo Ltd. shares reached a high of $11.7599 and dropped to a low of $10.96 until finishing in the latest session at $11.53.

The one-year STNE stock forecast points to a potential downside of -2.85. The average equity rating for STNE stock is currently 2.80, 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 $11.21 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 2.80. 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 0.88, with the Price to Sales ratio for STNE stock in the period of the last 12 months amounting to 0.31. The Price to Book ratio for the last quarter was 1.54, with the Price to Cash per share for the same quarter was set at 3.49. Price to Free Cash Flow for STNE in the course of the last twelve months was 33.36 with Quick ratio for the last quarter at 1.30.

STNE Stock Performance Analysis:

StoneCo Ltd. [STNE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.34. With this latest performance, STNE shares gained by 14.16% in over the last four-week period, additionally plugging by 23.58% over the last 6 months – not to mention a drop of -40.04% 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 56.20, with the RSI for the last a single of trading hit 58.11, and the three-weeks RSI is set at 55.12 for StoneCo Ltd. [STNE]. The present Moving Average for the last 50 days of trading for this stock 10.35, while it was recorded at 10.84 for the last single week of trading, and 10.17 for the last 200 days.

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 -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.

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 28.36%.

StoneCo Ltd. [STNE] Insider Position Details

There are presently around $2,165 million, or 68.70% of STNE stock, in the hands of institutional investors. The top three institutional holders of STNE stocks are: BLACKROCK INC. with ownership of 21,451,911, which is approximately 27.801% of the company’s market cap and around 10.66% of the total institutional ownership; BERKSHIRE HATHAWAY INC, holding 10,695,448 shares of the stock with an approximate value of $123.32 million in STNE stocks shares; and NIKKO ASSET MANAGEMENT AMERICAS, INC., currently with $110.65 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 November and at the time of the November reporting period, where 120 institutional holders increased their position in StoneCo Ltd. [NASDAQ:STNE] by around 40,136,019 shares. Additionally, 138 investors decreased positions by around 39,391,350 shares, while 43 investors held positions by with 108,282,762 shares. The mentioned changes placed institutional holdings at 187,810,131 shares, according to the latest SEC report filing. STNE stock had 41 new institutional investments in for a total of 27,867,508 shares, while 53 institutional investors sold positions of 8,897,982 shares during the same period.

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