StoneCo (NASDAQ:STNE) has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 4 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 2 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for StoneCo, presenting an average target of $20.17, a high estimate of $23.00, and a low estimate of $16.00. Highlighting a 2.09% decrease, the current average has fallen from the previous average price target of $20.60.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive StoneCo is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Sheriq Sumar | Evercore ISI Group | Lowers | Outperform | $23.00 | $25.00 |
| Yuri Fernandes | JP Morgan | Maintains | Overweight | $20.00 | $20.00 |
| John Coffey | Barclays | Lowers | Equal-Weight | $16.00 | $17.00 |
| John Coffey | Barclays | Lowers | Equal-Weight | $17.00 | $18.00 |
| James Friedman | Susquehanna | Lowers | Positive | $22.00 | $23.00 |
| Otavio Tanganelli | Banco Bradesco BBI S.A | Announces | Outperform | $23.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to StoneCo. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of StoneCo compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
To gain a panoramic view of StoneCo's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on StoneCo analyst ratings.
Unveiling the Story Behind StoneCo
StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs great solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. It has two segments Financial Services offers payments, digital banking, and credit solutions, focusing Ton solution mainly on micro-merchants, and Stone solution on SMBs. In Software, it offers POS and ERP solutions for different retail and services verticals, Customer Relationship Management, engagement tools, e-commerce, and Order Management System solutions, among others.
Breaking Down StoneCo's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: StoneCo displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 15.45%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: StoneCo's net margin excels beyond industry benchmarks, reaching 12.65%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): StoneCo's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.52%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): StoneCo's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.74%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.55.
The Core of Analyst Ratings: What Every Investor Should Know
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.