Beyond The Numbers: 5 Analysts Discuss StoneCo Stock

In the preceding three months, 5 analysts have released ratings for StoneCo STNE, presenting a wide array of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for StoneCo, revealing an average target of $19.6, a high estimate of $23.00, and a low estimate of $16.00. This upward trend is apparent, with the current average reflecting a 1.82% increase from the previous average price target of $19.25.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of StoneCo by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to StoneCo. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of StoneCo compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for StoneCo's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

Delving into StoneCo's Background

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.

A Deep Dive into StoneCo's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: StoneCo's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 15.45%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: StoneCo's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.65% net margin, the company effectively manages costs and achieves strong profitability.

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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.74% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: StoneCo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.55.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.