StoneCo Ltd (NASDAQ: STNE)’s stock price has soared by 1.39 in relation to previous closing price of 13.68. Nevertheless, the company has seen a gain of 29.38% in its stock price over the last five trading days. The Motley Fool reported 2023-11-17 that StoneCo is down 86% since its peak price in 2021. The company had to write off a significant amount of bad debt, which weighed on the business.
Is It Worth Investing in StoneCo Ltd (NASDAQ: STNE) Right Now?
The price-to-earnings ratio for StoneCo Ltd (NASDAQ: STNE) is 22.39x, which is above its average ratio. Moreover, the 36-month beta value for STNE is 2.33. Analysts have varying opinions on the stock, with 8 analysts rating it as a “buy,” 0 as “overweight,” 7 as “hold,” and 2 as “sell.”
The average price recommended by analysts for StoneCo Ltd (STNE) is $76.77, which is $1.92 above the current market price. The public float for STNE is 248.34M and currently, short sellers hold a 5.52% of that float. On November 20, 2023, STNE’s average trading volume was 5.14M shares.
STNE’s Market Performance
The stock of StoneCo Ltd (STNE) has seen a 29.38% increase in the past week, with a 37.06% rise in the past month, and a 12.31% gain in the past quarter. The volatility ratio for the week is 6.65%, and the volatility levels for the past 30 days are at 4.67% for STNE. The simple moving average for the last 20 days is 28.91% for STNE’s stock, with a simple moving average of 21.31% for the last 200 days.
STNE Trading at 30.33% 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 -6.47% of loss for the given period.
Volatility was left at 4.67%, however, over the last 30 days, the volatility rate increased by 6.65%, as shares surge +39.40% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +20.71% upper at present.
During the last 5 trading sessions, STNE rose by +29.38%, which changed the moving average for the period of 200-days by +20.92% in comparison to the 20-day moving average, which settled at $10.96. In addition, StoneCo Ltd saw 46.93% 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 7.90, with 2.53 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 4.28, 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.
To wrap up, the performance of StoneCo Ltd (STNE) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.