StoneCo (NASDAQ:STNE) Shares Gap Down – Here’s Why

StoneCo Ltd. (NASDAQ:STNE)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $8.74, but opened at $8.25. StoneCo shares last traded at $8.52, with a volume of 811,125 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on STNE. JPMorgan Chase & Co. cut their price objective on StoneCo from $21.00 to $15.00 and set an “overweight” rating for the company in a report on Monday, December 16th. Susquehanna reduced their price objective on StoneCo from $22.00 to $19.00 and set a “positive” rating for the company in a research note on Wednesday, November 13th. Barclays dropped their target price on StoneCo from $13.00 to $12.00 and set an “equal weight” rating on the stock in a research report on Monday, November 18th. Cantor Fitzgerald raised StoneCo to a “strong-buy” rating in a research report on Thursday, October 3rd. Finally, Citigroup reissued a “neutral” rating and set a $9.00 price objective (down previously from $19.00) on shares of StoneCo in a report on Thursday. One analyst has rated the stock with a sell rating, two have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, StoneCo has a consensus rating of “Moderate Buy” and an average price target of $14.75.

StoneCo Price Performance

The stock has a fifty day simple moving average of $9.00 and a 200-day simple moving average of $11.14. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.47. The stock has a market cap of $2.64 billion, a price-to-earnings ratio of 6.69, a price-to-earnings-growth ratio of 0.30 and a beta of 2.23.

Institutional Trading of StoneCo

Hedge funds have recently modified their holdings of the company. Sumitomo Mitsui DS Asset Management Company Ltd bought a new stake in shares of StoneCo in the 3rd quarter worth approximately $125,000. Point72 Hong Kong Ltd acquired a new position in StoneCo in the second quarter worth $135,000. Covestor Ltd boosted its stake in StoneCo by 40.9% in the third quarter. Covestor Ltd now owns 13,350 shares of the company’s stock worth $150,000 after purchasing an additional 3,878 shares in the last quarter. XTX Topco Ltd acquired a new position in StoneCo in the third quarter worth $167,000. Finally, Sanctuary Advisors LLC bought a new stake in shares of StoneCo during the third quarter worth $156,000. Institutional investors own 73.19% of the company’s stock.

StoneCo Company Profile

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.