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StoneCo Ltd. (STNE) Stock: A SWOT Analysis

The price-to-earnings ratio for StoneCo Ltd. (NASDAQ: STNE) is above average at 22.42x, while the 36-month beta value is 2.24.Analysts have differing opinions on the stock, with 7 analysts rating it as a “buy,” 0 as “overweight,” 8 as “hold,” and 2 as “sell.”

The average price point forecasted by analysts for StoneCo Ltd. (STNE) is $74.39, which is $4.16 above the current market price. The public float for STNE is 274.28M, and currently, short sellers hold a 5.68% ratio of that floaft. The average trading volume of STNE on September 19, 2023 was 4.64M shares.

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STNE) stock’s latest price update

The stock of StoneCo Ltd. (NASDAQ: STNE) has increased by 0.26 when compared to last closing price of 11.36.Despite this, the company has seen a loss of -2.40% in its stock price over the last five trading days. The Motley Fool reported 2023-09-18 that The Brazilian bank Nu Holdings has changed the financial lives of millions. Investors have yet to recognize the comeback of Brazilian fintech StoneCo. Southeast Asian conglomerate Sea Limited may finally be turning around declines in one of its lagging segments.

STNE’s Market Performance

StoneCo Ltd. (STNE) has seen a -2.40% fall in stock performance for the week, with a -7.62% decline in the past month and a -15.75% plunge in the past quarter. The volatility ratio for the week is 3.01%, and the volatility levels for the past 30 days are at 3.70% for STNE. The simple moving average for the past 20 days is -5.18% for STNE’s stock, with a 0.57% simple moving average for the past 200 days.

Analysts’ Opinion of STNE

Many brokerage firms have already submitted their reports for STNE stocks, with UBS repeating the rating for STNE by listing it as a “Buy.” The predicted price for STNE in the upcoming period, according to UBS is $18 based on the research report published on August 03, 2023 of the current year 2023.

STNE Trading at -10.02% from the 50-Day Moving Average

After a stumble in the market that brought STNE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -23.20% of loss for the given period.

Volatility was left at 3.70%, however, over the last 30 days, the volatility rate increased by 3.01%, as shares sank -7.55% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.71% upper at present.

During the last 5 trading sessions, STNE fell by -2.40%, which changed the moving average for the period of 200-days by +4.30% in comparison to the 20-day moving average, which settled at $11.97. In addition, StoneCo Ltd. saw 20.66% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for STNE

Current profitability levels for the company are sitting at:

  • -21.11 for the present operating margin
  • +32.84 for the gross margin

The net margin for StoneCo Ltd. stands at -11.86. The total capital return value is set at -4.81, while invested capital returns managed to touch -3.25. Equity return is now at value 6.20, with 2.00 for asset returns.

Based on StoneCo Ltd. (STNE), the company’s capital structure generated 43.05 points at debt to equity in total, while total debt to capital is 30.10. Total debt to assets is 13.14, with long-term debt to equity ratio resting at 21.16. Finally, the long-term debt to capital ratio is 14.79.

When we switch over and look at the enterprise to sales, we see a ratio of 3.76, with the company’s debt to enterprise value settled at 0.34. The receivables turnover for the company is 0.22 and the total asset turnover is 0.11. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.22.

Conclusion

In a nutshell, StoneCo Ltd. (STNE) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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