Critical Insights From StoneCo Analyst Ratings: What You Need To Know

Ratings for StoneCo STNE were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $17.83, a high estimate of $23.00, and a low estimate of $14.00. This current average represents a 10.85% decrease from the previous average price target of $20.00.

Decoding Analyst Ratings: A Detailed Look

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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of StoneCo compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of StoneCo's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of StoneCo's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Unveiling the Story Behind StoneCo

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.

Financial Insights: StoneCo

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: StoneCo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 11.86%. This signifies 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 16.07% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): StoneCo's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.95%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: StoneCo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.61.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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