Is StoneCo Ltd. (STNE) Price Targeted To Increase?

As of Friday close, StoneCo Ltd.’s (NASDAQ:STNE) stock was up $1.46, moving up 20.11 percent to $8.72. The average number of shares traded per day over the past five days has been 10,535,180 shares. 3 times new highs have been achieved over the past 5 days, with a $0.21 gain in that time frame. In the last twenty days, the average volume was 8,239,585, while in the previous 50 days, it was 10,127,286.


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Since last month, STNE stock retreated -18.58%. Shares of the company fell to $6.81 on 05/12/22, the lowest level in the past month. A 52-week high of $71.08 was reached on 01/03/22 after having rallying from a 52-week low of $6.81. Since the beginning of this year, STNE’s stock price has dropped by -48.28% or -$8.14, and marked a new high 1 time. However, the stock has declined by -87.73% since its 52-week high.

Valuation Metrics

The stock’s beta is 2.35. Besides these, the trailing price-to-sales (P/S) ratio of 2.33, the price-to-book (PB) ratio of 1.00, and the price-to-cash flow ratio of 5.66 may also be considered.

Financial Health

In the three months ended September 29, StoneCo Ltd.’s quick ratio stood at 1.30, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.33, and the total debt-to-equity ratio was 0.62. On the profitability front, the trailing twelve-month gross margin is 72.00% percent. In the year ended September 29, operating margins totaled 39.20%. Based on annual data, STNE earned $576.27 million in gross profit and brought in $893.84 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 11.30%. Return on equity (ROE) for the past 12 months was -9.30%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected StoneCo Ltd. to report $0.11 quarterly earnings, the actual figure was $0.08 per share, beating the consensus estimate by -27.30%. During the quarter, the company generated $229.32 million in EBITDA. The liabilities of StoneCo Ltd. were 5.27 billion at the end of its most recent quarter ended September 29, and its total debt was $7.11 billion.

Technical Picture

This quick technical analysis looks at StoneCo Ltd.’s (STNE) price momentum. With a historical volatility rate of 137.54%, the RSI 9-day stood at 47.77% on 13 May.

With respect to its five-day moving average, the current StoneCo Ltd. price is up by +2.47% percent or $0.21. At present, STNE shares trade -14.43% below its 20-day simple moving average and -41.67% percent below its 100-day simple moving average. However, the stock is currently trading approximately -16.79% below its SMA50 and -85.22% below its SMA200.

Stochastic coefficient K was 24.57% and Stochastic coefficient D was 13.02%, while ATR was 0.89. Given the Stochastic reading of 58.56% for the 14-day period, the RSI (14) reading has been calculated as 44.58%. As of today, the MACD Oscillator reading stands at -0.69, while the 14-day reading stands at -1.10.

Analyst Ratings

Cantor Fitzgerald launched its rating on StoneCo Ltd. (NASDAQ: STNE) to an Overweight in a note to investors on April 08, 2022. StoneCo Ltd. (STNE) has been rated Overweight by analysts. According to 1 brokerage firm, STNE is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate StoneCo Ltd. stock as buy, with 6 recommending it as overweight.

With a median target price of $75.25, the current consensus forecast for the stock is $48.49 – $204.91. Based on these forecasts, analysts predict StoneCo Ltd. (STNE) will achieve an average price target of $87.97.

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