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StoneCo Ltd. (NASDAQ: STNE) Is A Great Opportunity For Risk-Tolerant Investors

StoneCo Ltd. (NASDAQ:STNE)’s traded shares stood at 9.98 million during the last session, with the company’s beta value hitting 2.21. At the close of trading, the stock’s price was $8.87, to imply a decrease of -5.74% or -$0.54 in intraday trading. The STNE share’s 52-week high remains $15.01, putting it -69.22% down since that peak but still an impressive 23.22% since price per share fell to its 52-week low of $6.81. The company has a valuation of $2.83B, with an average of 7.67 million shares in intraday trading volume over the past 10 days and average of 4.97 million shares over the past 3 months.

Analysts have given a consensus recommendation of a Hold for StoneCo Ltd. (STNE), translating to a mean rating of 2.70. Of 20 analyst(s) looking at the stock, 2 analyst(s) give STNE a Sell rating. 0 of those analysts rate the stock as Overweight while 13 advise Hold as 5 recommend it as a Buy. 0 analyst(s) have given it an Underweight rating. Estimates put the company’s current-quarter earnings per share at $0.12.

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StoneCo Ltd. (NASDAQ:STNE) trade information

After registering a -5.74% downside in the last session, StoneCo Ltd. (STNE) has traded red over the past five days. The stock hit a weekly high of 9.84 this Friday, 03/17/23, dropping -5.74% in its intraday price action. The 5-day price performance for the stock is 1.72%, and -12.09% over 30 days. With these gigs, the year-to-date price performance is -6.04%. Short interest in StoneCo Ltd. (NASDAQ:STNE) saw shorts transact 16.75 million shares and set a 3.8 days time to cover.

Analysts on Wall Street suggest a consensus price target of $63.00, implying an increase of 85.92% to the stock’s current value. The extremes give us $31.85 and $90.23 for target low and target high price respectively. As such, STNE has been trading -917.25% off suggested target high and -259.08% from its likely low.

StoneCo Ltd. (STNE) estimates and forecasts

Looking at statistics comparing StoneCo Ltd. share performance against respective industry, we note that the company has outperformed competitors. StoneCo Ltd. (STNE) shares are -6.43% down over the last 6 months, with its year-to-date growth rate higher than industry average at 48.48% against 18.30%. Revenue is forecast to grow 300.00% this quarter before jumping 50.00% for the next one. The rating firms project that company’s revenue will grow 104.00% compared to the previous financial year.

Revenue forecast for the current quarter as set by 7 analysts is $515.13 million. Meanwhile, for the quarter ending Mar 2023, a total of 7 analyst(s) estimate revenue growth to $522.49 million.Earnings reports from the last fiscal year show that sales brought in $350.29 million and $387.19 million respectively in the corresponding quarters. In this case, analysts estimate current quarter sales to rise 47.10% before jumping 34.90% in the following quarter.

An assessment of the company’s 5-year growth patterns shows that annual earnings shrunk an estimated -59.80% for the past 5-year period. While 2023 is set for a -251.30% return in earnings, projections for the next 5 years are at 64.80% annually.

STNE Dividends

StoneCo Ltd. has its next earnings report out between May 31 and June 05. However, it is important to take into account that this dividend yield ratio is just an indicator to only serve the purpose of guidance. Investors interested to invest in the stock should ponder company’s other fundamental and operations related aspects too. StoneCo Ltd. has a forward dividend ratio of 0, with the share yield ticking at 0.00% to continue the rising pattern observed over the past year. The company’s average dividend yield trailing the past 5-year period is 0.00%.

StoneCo Ltd. (NASDAQ:STNE)’s Major holders

StoneCo Ltd. insiders hold 10.66% of total outstanding shares, with institutional holders owning 67.47% of the shares at 75.52% float percentage. In total, 67.47% institutions holds shares in the company, led by Blackrock Inc. As of Sep 29, 2022, the company held over 21.45 million shares (or 8.05% of shares), all amounting to roughly $204.44 million.

The next major institution holding the largest number of shares is Berkshire Hathaway, Inc with 10.7 million shares, or about 4.01% of shares outstanding. As of the market price on Sep 29, 2022, these shares were worth $101.93 million.

We also have Fidelity Series Emerging Markets Opportunities Fund and iShares Russell 2000 ETF as the top two Mutual Funds with the largest holdings of the StoneCo Ltd. (STNE) shares. Going by data provided on Nov 29, 2022, Fidelity Series Emerging Markets Opportunities Fund holds roughly 6.29 million shares. This is just over 2.36% of the total shares, with a market valuation of $73.47 million. Data from the same date shows that the other fund manager holds a little less at 6.3 million, or 2.36% of the shares, all valued at about 59.45 million.

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