StoneCo (NASDAQ:STNE) Shares Down 5% – Time to Sell?

StoneCo Ltd. (NASDAQ:STNE)’s stock price fell 5% during trading on Monday . The company traded as low as $10.47 and last traded at $10.61. 1,283,128 shares changed hands 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.

Analysts Set New Price Targets

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

StoneCo Trading Down 3.9%

The company has a 50 day moving average of $10.97 and a two-hundred day moving average of $13.67. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.33 and a current ratio of 1.33. The stock has a market capitalization of $2.67 billion, a PE ratio of 4.30, a P/E/G ratio of 0.21 and a beta of 1.73.

StoneCo (NASDAQ:STNE) last released its quarterly earnings results on Wednesday, May 13th. The company reported $0.42 EPS for the quarter, meeting analysts’ consensus estimates of $0.42. The company had revenue of $141.16 million during the quarter, compared to analysts’ expectations of $675.11 million. StoneCo had a return on equity of 21.05% and a net margin of 23.82%. Sell-side analysts predict that StoneCo Ltd. will post 2.31 EPS for the current year.

StoneCo Dividend Announcement

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

Insider Buying and Selling

In related news, Director Silvio Jose Morais sold 9,000 shares of StoneCo stock in a transaction that occurred on 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 in the company, valued at $237,090. This trade represents a 30.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. SPX Gestao de Recursos Ltda grew its holdings in shares of StoneCo by 47.6% during the first quarter. SPX Gestao de Recursos Ltda now owns 7,728,014 shares of the company’s stock valued at $109,120,000 after buying an additional 2,491,394 shares during the last quarter. State Street Corp raised its stake in StoneCo by 23.0% in the 4th quarter. State Street Corp now owns 7,714,651 shares of the company’s stock worth $114,101,000 after acquiring an additional 1,440,760 shares during the last quarter. BRC Global BAH Investments Ltd. lifted its position in StoneCo by 32.7% during the 1st quarter. BRC Global BAH Investments Ltd. now owns 7,580,409 shares of the company’s stock worth $107,035,000 after acquiring an additional 1,867,018 shares during the period. Squadra Investments Gestao DE Recursos LTDA. lifted its position in StoneCo by 435.5% during the 1st quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 6,662,253 shares of the company’s stock worth $94,071,000 after acquiring an additional 5,418,053 shares during the period. Finally, Bank of America Corp DE grew its stake in StoneCo by 151.7% during the 1st quarter. Bank of America Corp DE now owns 6,032,572 shares of the company’s stock valued at $85,180,000 after purchasing an additional 3,636,276 shares during the last quarter. Hedge funds and other institutional investors own 73.19% of the company’s stock.

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.