What Analysts Are Saying About StoneCo Stock

4 analysts have shared their evaluations of StoneCo STNE during the recent three months, expressing a mix of bullish and bearish perspectives.

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.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $9.75, a high estimate of $14.00, and a low estimate of $6.00. A decline of 26.02% from the prior average price target is evident in the current average.

Breaking Down Analyst Ratings: A Detailed Examination

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:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to StoneCo. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of StoneCo compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of StoneCo's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of StoneCo's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Discovering StoneCo: A Closer Look

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.

Breaking Down StoneCo's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: StoneCo's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 8.63%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: StoneCo's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -83.7%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -21.6%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -5.47%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.1, StoneCo adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

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.

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.

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