StoneCo (NASDAQ:STNE) has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing 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 $13.0, a high estimate of $18.00, and a low estimate of $7.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.14%.

Interpreting Analyst Ratings: A Closer Look

A clear picture of StoneCo's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into StoneCo's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Unveiling the Story Behind StoneCo

StoneCo: A Financial Overview

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: StoneCo displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 11.86%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: StoneCo's net margin excels beyond industry benchmarks, reaching 16.07%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): StoneCo's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.29%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): StoneCo's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.95%, the company may face hurdles in achieving optimal financial performance.

Debt Management: StoneCo's debt-to-equity ratio is below the industry average. With a ratio of 0.61, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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