StoneCo (NASDAQ:STNE) Shares Gap Up Following Strong Earnings

StoneCo Ltd. (NASDAQ:STNEGet Rating) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $9.87, but opened at $11.75. StoneCo shares last traded at $11.39, with a volume of 190,730 shares changing hands.

The company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.02. The firm had revenue of $478.88 million during the quarter, compared to analysts’ expectations of $477.52 million. StoneCo had a negative return on equity of 7.68% and a negative net margin of 36.63%.

Analysts Set New Price Targets

STNE has been the subject of several research analyst reports. The Goldman Sachs Group cut StoneCo from a “neutral” rating to a “sell” rating and reduced their target price for the company from $9.80 to $7.80 in a research note on Tuesday, September 6th. Wells Fargo & Company increased their target price on StoneCo from $11.00 to $12.00 and gave the company an “equal weight” rating in a research note on Friday. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $16.84.

Institutional Investors Weigh In On StoneCo

Several large investors have recently added to or reduced their stakes in STNE. National Bank of Canada FI increased its position in StoneCo by 75.8% in the first quarter. National Bank of Canada FI now owns 3,480 shares of the company’s stock worth $41,000 after buying an additional 1,500 shares during the period. Asset Management One Co. Ltd. increased its holdings in shares of StoneCo by 33.8% during the second quarter. Asset Management One Co. Ltd. now owns 6,665 shares of the company’s stock valued at $51,000 after purchasing an additional 1,684 shares during the period. Tortoise Index Solutions LLC increased its holdings in shares of StoneCo by 13.2% during the second quarter. Tortoise Index Solutions LLC now owns 9,019 shares of the company’s stock valued at $69,000 after purchasing an additional 1,053 shares during the period. Captrust Financial Advisors increased its holdings in shares of StoneCo by 281.5% during the first quarter. Captrust Financial Advisors now owns 6,268 shares of the company’s stock valued at $73,000 after purchasing an additional 4,625 shares during the period. Finally, Canton Hathaway LLC acquired a new position in shares of StoneCo during the second quarter valued at $83,000. 59.69% of the stock is owned by institutional investors and hedge funds.

StoneCo Price Performance

The company has a market capitalization of $3.60 billion, a price-to-earnings ratio of -6.59 and a beta of 2.15. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.24 and a quick ratio of 1.24. The business has a fifty day moving average price of $10.35 and a 200 day moving average price of $9.70.

About StoneCo

(Get Rating)

StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors, as well as sells solutions to brick-and-mortar and digital merchants through sales team.

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