StoneCo Ltd (NASDAQ: STNE) has experienced a decline in its stock price by -1.40 compared to its previous closing price of 8.56. However, the company has seen a gain of 3.69% in its stock price over the last five trading days. seekingalpha.com reported 2025-01-16 that StoneCo: A Rare Buying Opportunity (Rating Upgrade)
Is It Worth Investing in StoneCo Ltd (NASDAQ: STNE) Right Now?
StoneCo Ltd (NASDAQ: STNE) has a higher price-to-earnings ratio of 6.90x compared to its average ratio, The 36-month beta value for STNE is at 2.25. Analysts have varying views on the stock, with 10 analysts rating it as a “buy,” 3 rating it as “overweight,” 5 as “hold,” and 1 as “sell.”
The public float for STNE is 256.16M, and currently, shorts hold a 10.27% of that float. The average trading volume for STNE on January 22, 2025 was 5.43M shares.
STNE’s Market Performance
STNE stock saw a decrease of 3.69% in the past week, with a monthly decline of -3.10% and a quarterly a decrease of -23.06%. The volatility ratio for the week is 3.33%, and the volatility levels for the last 30 days are 3.72% for StoneCo Ltd (STNE). The simple moving average for the past 20 days is 3.15% for STNE’s stock, with a -30.94% simple moving average for the past 200 days.
Analysts’ Opinion of STNE
Morgan Stanley, on the other hand, stated in their research note that they expect to see STNE reach a price target of $7, previously predicting the price at $16.50. The rating they have provided for STNE stocks is “Underweight” according to the report published on September 05th, 2024.
UBS gave a rating of “Buy” to STNE, setting the target price at $17 in the report published on July 08th of the previous year.
STNE Trading at -7.90% 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 -56.63% of loss for the given period.
Volatility was left at 3.72%, however, over the last 30 days, the volatility rate increased by 3.33%, as shares surge +4.98% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -23.48% lower at present.
During the last 5 trading sessions, STNE rose by +3.69%, which changed the moving average for the period of 200-days by -48.28% in comparison to the 20-day moving average, which settled at $8.18. In addition, StoneCo Ltd saw 5.90% 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:
- 0.04 for the present operating margin
- 0.73 for the gross margin
The net margin for StoneCo Ltd stands at 0.17. The total capital return value is set at 0.02. Equity return is now at value 14.20, with 4.36 for asset returns.
Based on StoneCo Ltd (STNE), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at -0.37. The debt to equity ratio resting at 0.66. The interest coverage ratio of the stock is 0.6.
Currently, EBITDA for the company is 3.54 billion with net debt to EBITDA at 1.37. When we switch over and look at the enterprise to sales, we see a ratio of 1.67. The receivables turnover for the company is 0.45for trailing twelve months and the total asset turnover is 0.24. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.42.
Conclusion
In conclusion, StoneCo Ltd (STNE) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. 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.
