StoneCo (NASDAQ:STNE) Trading Down 5% – Here’s What Happened

StoneCo Ltd. (NASDAQ:STNE) shares traded down 5% on Monday . The stock traded as low as $10.47 and last traded at $10.61. 1,283,128 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 5,443,164 shares. The stock had previously closed at $11.17.

Analyst Ratings Changes

STNE has been the subject of several research reports. BTIG Research lowered their price objective on shares of StoneCo from $22.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, May 15th. JPMorgan Chase & Co. reduced their target price on shares of StoneCo from $20.00 to $16.50 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Citigroup lowered StoneCo from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $18.00 to $11.00 in a research report on Friday, May 15th. UBS Group reduced their price objective on StoneCo from $19.50 to $19.00 and set a “buy” rating on the stock in a research note on Wednesday, March 11th. Finally, Weiss Ratings lowered StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, June 18th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $17.58.

StoneCo Trading Down 3.9%

The firm has a market cap of $2.67 billion, a P/E ratio of 4.30, a P/E/G ratio of 0.21 and a beta of 1.73. The company’s 50 day simple moving average is $10.97 and its 200-day simple moving average is $13.67. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.57.

StoneCo (NASDAQ:STNE) last issued its quarterly earnings results on Wednesday, May 13th. The company reported $0.42 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.42. The firm had revenue of $141.16 million during the quarter, compared to analyst estimates of $675.11 million. StoneCo had a return on equity of 21.05% and a net margin of 23.82%. As a group, research analysts predict that StoneCo Ltd. will post 2.31 earnings per share for the current fiscal year.

StoneCo Announces Dividend

The business also recently declared a special dividend, which was paid on Monday, May 4th. Stockholders of record on Friday, April 24th were issued a $2.53 dividend. The ex-dividend date was Friday, April 24th.

Insider Transactions at StoneCo

In other StoneCo news, Director Silvio Jose Morais sold 9,000 shares of the business’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $11.29, for a total value of $101,610.00. Following the completion of the sale, the director directly owned 21,000 shares of the company’s stock, valued at $237,090. The trade was a 30.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Institutional Investors Weigh In On StoneCo

Several hedge funds have recently made changes to their positions in the company. Neuberger Berman Group LLC increased its stake in shares of StoneCo by 4.6% during the fourth quarter. Neuberger Berman Group LLC now owns 16,959 shares of the company’s stock valued at $251,000 after buying an additional 741 shares during the period. Farther Finance Advisors LLC grew its holdings in StoneCo by 22.4% during the 4th quarter. Farther Finance Advisors LLC now owns 4,699 shares of the company’s stock worth $69,000 after acquiring an additional 860 shares in the last quarter. Rockefeller Capital Management L.P. increased its position in StoneCo by 74.1% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,199 shares of the company’s stock valued at $33,000 after purchasing an additional 936 shares during the period. Versant Capital Management Inc increased its position in StoneCo by 54.4% during the 2nd quarter. Versant Capital Management Inc now owns 3,032 shares of the company’s stock valued at $33,000 after purchasing an additional 1,068 shares during the period. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of StoneCo by 77.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,705 shares of the company’s stock valued at $38,000 after purchasing an additional 1,180 shares in the last quarter. 73.19% of the stock is currently owned by hedge funds and other institutional investors.

About StoneCo

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.