StoneCo (NASDAQ:STNE) Shares Gap Down – Should You Sell?

StoneCo Ltd. (NASDAQ:STNE)’s share price gapped down before the market opened on Friday . The stock had previously closed at $10.41, but opened at $9.50. StoneCo shares last traded at $9.36, with a volume of 1,517,985 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Cantor Fitzgerald upgraded shares of StoneCo to a “strong-buy” rating in a report on Thursday, October 3rd. UBS Group raised their price objective on shares of StoneCo from $17.00 to $18.00 and gave the stock a “buy” rating in a report on Thursday, August 29th. Susquehanna reduced their target price on StoneCo from $22.00 to $19.00 and set a “positive” rating on the stock in a report on Wednesday, November 13th. Barclays lowered their target price on StoneCo from $13.00 to $12.00 and set an “equal weight” rating for the company in a research note on Monday, November 18th. Finally, Morgan Stanley reaffirmed an “underweight” rating and issued a $7.00 price target (down from $16.50) on shares of StoneCo in a research note on Thursday, September 5th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, StoneCo currently has an average rating of “Moderate Buy” and a consensus target price of $16.89.

StoneCo Stock Down 8.0 %

The firm has a market capitalization of $2.96 billion, a P/E ratio of 7.47, a P/E/G ratio of 0.37 and a beta of 2.29. The company has a fifty day simple moving average of $10.91 and a 200 day simple moving average of $12.34. The company has a quick ratio of 1.42, a current ratio of 1.42 and a debt-to-equity ratio of 0.47.

Institutional Trading of StoneCo

Institutional investors have recently bought and sold shares of the company. Lazard Asset Management LLC bought a new position in shares of StoneCo in the first quarter worth approximately $41,000. Central Bank & Trust Co. bought a new position in StoneCo in the 2nd quarter valued at approximately $40,000. Y.D. More Investments Ltd boosted its stake in StoneCo by 90.2% during the 2nd quarter. Y.D. More Investments Ltd now owns 4,798 shares of the company’s stock valued at $58,000 after purchasing an additional 2,275 shares during the last quarter. Invst LLC purchased a new stake in StoneCo during the 1st quarter valued at $172,000. Finally, Sumitomo Mitsui DS Asset Management Company Ltd bought a new stake in shares of StoneCo in the 3rd quarter worth $125,000. 73.19% of the stock is owned by hedge funds and other institutional investors.

About StoneCo

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team.