StoneCo Ltd. (NASDAQ:STNE) marked $9.76 per share on Wednesday, up from a previous closing price of $9.73. While StoneCo Ltd. has overperformed by 0.31%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, STNE fell by -41.28%, with highs and lows ranging from $16.43 to $6.81, whereas the simple moving average fell by -0.98% in the last 200 days.
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On December 07, 2022, Morgan Stanley Downgraded StoneCo Ltd. (NASDAQ: STNE) to Equal-Weight. A report published by Goldman on December 01, 2022, Upgraded its rating to ‘Neutral’ for STNE. Evercore ISI also Upgraded STNE shares as ‘Outperform’, setting a target price of $16 on the company’s shares in a report dated November 28, 2022. Goldman September 06, 2022d the rating to Sell on September 06, 2022, and set its price target from $9.80 to $7.80. Cantor Fitzgerald initiated its ‘Overweight’ rating for STNE, as published in its report on April 08, 2022. Citigroup’s report from March 18, 2022 suggests a price prediction of $15 for STNE shares, giving the stock a ‘Buy’ rating. Evercore ISI also rated the stock as ‘In-line’.
Analysis of StoneCo Ltd. (STNE)
Further, the quarter-over-quarter increase in sales is 70.70%, showing a positive trend in the upcoming months.
In order to gain a clear picture of StoneCo Ltd.’s future performance, a variety of well-rounded analysis and research techniques can be applied, with equity being the most critical. The goal here is to ensure that your current return on equity of -10.70% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.30, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
An average volume of 5.70M can be a very valuable indicator of volatility for STNE stock. On a monthly basis, the volatility of the stock is set at 5.64%, whereas on a weekly basis, it is put at 5.89%, with a gain of 1.67% over the past seven days. Furthermore, long-term investors anticipate a median target price of $11.66, showing growth from the present price of $9.76, which can serve as yet another indication of whether STNE is worth investing in or should be passed over.
How Do You Analyze StoneCo Ltd. Shares?
In addition to the fundamentals, you should also consider how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 10.66%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 68.60% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in STNE shares?
The recent increase in stakes in STNE appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in STNE has increased by 10.45% in the first quarter. The company now owns 14,660,524 shares of the stock, with a value of $138.4 million, following the purchase of 1,387,167 additional shares during the last quarter. During the last quarter, the company picked up 0 additional shares for a total stake of worth $100.97 million, bringing number of shares owned by the company to 10,695,448.
During the first quarter, Nikko Asset Management Americas, added a 18,408 position in STNE. Fidelity Management & Research Co purchased an additional 1.13 million shares in the last quarter, increasing its holdings by 16.42%, now holding 8.0 million shares worth $75.53 million. STNE shares are owned by institutional investors to the tune of 68.60% at present.
