StoneCo (NASDAQ:STNE) Stock Gets Downgrade from Wall Street Zen

StoneCo (NASDAQ:STNE) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday, Wall Street Zen reports.

STNE has been the topic of several other reports. The Goldman Sachs Group lowered their price objective on StoneCo from $11.00 to $9.50 and set a “neutral” rating on the stock in a research note on Friday, October 30th. Jefferies Financial Group started coverage on StoneCo in a research report on Thursday, July 23rd. They set a “hold” rating and a $12.60 target price for the company. Weiss Ratings lowered StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, November 3rd. Finally, UBS Group cut StoneCo from a “buy” rating to a “neutral” rating and lowered their price target for the company from $15.00 to $8.50 in a research report on Thursday, November 5th. Two analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $12.30.

StoneCo Stock Performance

NASDAQ STNE opened at $7.92 on Friday. The stock has a market cap of $1.97 billion, a P/E ratio of 3.26, a PEG ratio of 0.21 and a beta of 1.76. The company’s 50-day simple moving average is $9.70 and its 200 day simple moving average is $11.82. StoneCo has a twelve month low of $7.06 and a twelve month high of $18.19. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.84.

StoneCo (NASDAQ:STNE) last posted its quarterly earnings results on Thursday, November 12th. The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.03). The business had revenue of $126.71 million during the quarter, compared to analyst estimates of $715.87 million. StoneCo had a return on equity of 22.43% and a net margin of 21.65%. StoneCo has set its FY 2026 guidance at 2.101-2.218 EPS. As a group, research analysts forecast that StoneCo will post 2.21 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other StoneCo news, Director Silvio Morais sold 21,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $9.91, for a total transaction of $208,110.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 11.25% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. SBI Securities Co. Ltd. lifted its position in StoneCo by 19.5% in the 3rd quarter. SBI Securities Co. Ltd. now owns 6,109 shares of the company’s stock valued at $57,000 after acquiring an additional 995 shares in the last quarter. Versant Capital Management Inc increased its holdings in StoneCo by 54.4% during the 2nd quarter. Versant Capital Management Inc now owns 3,032 shares of the company’s stock worth $33,000 after purchasing an additional 1,068 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in StoneCo by 77.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,705 shares of the company’s stock worth $38,000 after purchasing an additional 1,180 shares in the last quarter. Handelsbanken Fonder AB raised its stake in shares of StoneCo by 3.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 43,097 shares of the company’s stock valued at $467,000 after purchasing an additional 1,400 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in shares of StoneCo by 13.3% in the 1st quarter. PNC Financial Services Group Inc. now owns 12,640 shares of the company’s stock valued at $178,000 after purchasing an additional 1,483 shares during the period. 73.19% of the stock is owned by institutional investors and hedge funds.

Latest StoneCo News

Investors following STNE have been watching these news items:

• Positive Sentiment: A Seeking Alpha commentary argues that a temporary interest-rate shock has created an “asymmetric entry point” in StoneCo, presenting a potentially attractive risk-reward opportunity for investors who believe the pressure will ease. StoneCo: Temporary Rate Shock Creates An Asymmetric Entry Point
• Neutral Sentiment: StoneCo filed unaudited interim financial statements for the quarter ended September 30. The filing makes the results available but, by itself, does not indicate a change in the business outlook. StoneCo Files September 30 Interim Financial Statements
• Negative Sentiment: Third-quarter EPS was reported at $0.45–$0.46, below analyst expectations of roughly $0.48–$0.49. The earnings shortfall could weigh on sentiment about near-term performance. StoneCo Ltd. Q3 Earnings Lag Estimates

StoneCo Company Profile

StoneCo Ltd. is a Brazilian financial technology company that provides payment processing and business management solutions, primarily to merchants in Brazil. Its services are designed to help businesses accept and manage payments across in-person and online channels. The company’s offerings include payment terminals, digital payment tools, financial services and software for managing business operations. Through brands such as Stone, Pagar.me and Linx, StoneCo serves businesses ranging from smaller merchants to larger retailers.