When Will StoneCo Ltd. (STNE) Be Worth Investing In?

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StoneCo Ltd. (NASDAQ:STNE) has seen 4.55 million shares traded in the last trading session. The company, currently valued at $4.92B, closed the last trade at $16.12 per share which meant it gained $0.21 on the day or 1.32% during that session. The STNE stock price is -490.07% off its 52-week high price of $95.12 and 13.03% above the 52-week low of $14.02. If we look at the company’s 10-day average daily trading volume, we find that it stood at 6.43 million shares traded. The 3-month trading volume is 7.58 million shares.

The consensus among analysts is that StoneCo Ltd. (STNE) is a Hold stock at the moment, with a recommendation rating of 2.70. 2 analysts rate the stock as a Sell, while 0 rate it as Overweight. 8 out of 16 have rated it as a Hold, with 6 advising it as a Buy. 0 have rated the stock as Underweight. The expected earnings per share for the stock is $0.13.

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Sporting 1.32% in the green in last session, the stock has traded in the red over the last five days, with the highest price hit on Friday, 01/07/22 when the STNE stock price touched $16.12 or saw a rise of 18.01%. Year-to-date, StoneCo Ltd. shares have moved -4.39%, while the 5-day performance has seen it change -4.39%. Over the past 30 days, the shares of StoneCo Ltd. (NASDAQ:STNE) have changed -8.41%. Short interest in the company has seen 14.71 million shares shorted with days to cover at 1.23.

Wall Street analysts have a consensus price target for the stock at $194.29, which means that the shares’ value could jump 91.7% from current levels. The projected low price target is $94.53 while the price target rests at a high of $414.95. In that case, then, we find that the current price level is -2474.13% off the targeted high while a plunge would see the stock gain -486.41% from current levels.

StoneCo Ltd. (STNE) estimates and forecasts

Figures show that StoneCo Ltd. shares have underperformed across the wider relevant industry. The company’s shares have lost -74.51% over the past 6 months, with this year growth rate of -64.91%, compared to -1.40% for the industry. Other than that, the company has, however, lowered its growth outlook for the 2022 fiscal year revenue. Growth estimates for the current quarter are -40.90% and 41.70% for the next quarter. Revenue growth from the last financial year stood is estimated to be 31.20%.

4 analysts offering their estimates for the company have set an average revenue estimate of $297.71 million for the current quarter. 2 have an estimated revenue figure of $296.26 million for the next quarter concluding in Mar 2022.

Earnings growth for 2022 is a modest 2.10% while over the next 5 years, the company’s earnings are expected to increase by 4.11%.

STNE Dividends

StoneCo Ltd. is expected to release its next earnings report between March 09 and March 14 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue.

StoneCo Ltd. (NASDAQ:STNE)’s Major holders

Insiders own 14.56% of the company shares, while shares held by institutions stand at 79.96% with a share float percentage of 93.59%. Investors are also buoyed by the number of investors in a company, with StoneCo Ltd. having a total of 442 institutions that hold shares in the company. The top two institutional holders are Capital Research Global Investors with over 37.21 million shares worth more than $1.29 billion. As of Sep 29, 2021, Capital Research Global Investors held 14.09% of shares outstanding.

The other major institutional holder is Price (T.Rowe) Associates Inc, with the holding of over 16.75 million shares as of Sep 29, 2021. The firm’s total holdings are worth over $581.55 million and represent 6.34% of shares outstanding.

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Also the top two Mutual Funds that are holding company’s shares are Europacific Growth Fund and New World Fund, Inc. As of Sep 29, 2021, the former fund manager holds about 6.69% shares in the company for having 17.66 million shares of worth $613.03 million while later fund manager owns 7.51 million shares of worth $260.72 million as of Sep 29, 2021, which makes it owner of about 2.84% of company’s outstanding stock.