StoneCo (NASDAQ:STNE) Hits New 1-Year Low After Analyst Downgrade

Shares of StoneCo Ltd. (NASDAQ:STNE) hit a new 52-week low during mid-day trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $21.00 to $15.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. StoneCo traded as low as $8.82 and last traded at $8.98, with a volume of 423549 shares traded. The stock had previously closed at $9.02.

STNE has been the subject of several other reports. UBS Group raised their price objective on shares of StoneCo from $17.00 to $18.00 and gave the stock a “buy” rating in a research report on Thursday, August 29th. Barclays cut their price objective on shares of StoneCo from $13.00 to $12.00 and set an “equal weight” rating for the company in a research report on Monday, November 18th. Susquehanna cut their price objective on shares of StoneCo from $22.00 to $19.00 and set a “positive” rating for the company in a research report on Wednesday, November 13th. Cantor Fitzgerald upgraded shares of StoneCo to a “strong-buy” rating in a research report on Thursday, October 3rd. Finally, Morgan Stanley reiterated an “underweight” rating and issued a $7.00 price target (down from $16.50) on shares of StoneCo in a research report on Thursday, September 5th. One analyst has rated the stock with a sell rating, one has issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $16.13.

Institutional Investors Weigh In On StoneCo

Hedge funds and other institutional investors have recently made changes to their positions in the business. Financial Perspectives Inc increased its stake in StoneCo by 8.4% in the second quarter. Financial Perspectives Inc now owns 14,019 shares of the company’s stock valued at $168,000 after acquiring an additional 1,083 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in StoneCo by 9.8% in the third quarter. Thrivent Financial for Lutherans now owns 19,877 shares of the company’s stock valued at $224,000 after acquiring an additional 1,773 shares during the last quarter. The Manufacturers Life Insurance Company increased its stake in StoneCo by 1.5% in the second quarter. The Manufacturers Life Insurance Company now owns 123,275 shares of the company’s stock valued at $1,478,000 after acquiring an additional 1,848 shares during the last quarter. Y.D. More Investments Ltd increased its stake in StoneCo by 90.2% in the second quarter. Y.D. More Investments Ltd now owns 4,798 shares of the company’s stock valued at $58,000 after acquiring an additional 2,275 shares during the last quarter. Finally, Atria Investments Inc increased its stake in StoneCo by 19.0% in the third quarter. Atria Investments Inc now owns 20,258 shares of the company’s stock valued at $228,000 after acquiring an additional 3,241 shares during the last quarter. 73.19% of the stock is currently owned by institutional investors and hedge funds.

StoneCo Price Performance

The business’s 50 day moving average is $10.45 and its 200-day moving average is $11.85. The firm has a market capitalization of $2.69 billion, a P/E ratio of 6.80, a PEG ratio of 0.35 and a beta of 2.21. The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 0.47.

About StoneCo

StoneCo Ltd. provides financial technology and software 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 sells solutions to brick-and-mortar and digital merchants through sales team.