StoneCo Ltd. (NASDAQ: STNE) stock jumped 5.12% on Tuesday to $10.67 against a previous-day closing price of $10.15. With 4.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.67 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $10.81 whereas the lowest price it dropped to was $9.97. The 52-week range on STNE shows that it touched its highest point at $16.28 and its lowest point at $6.81 during that stretch. It currently has a 1-year price target of $11.49. Beta for the stock currently stands at 2.17.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STNE was up-trending over the past week, with a rise of 9.66%, but this was up by 12.67% over a month. Three-month performance surged to 2.40% while six-month performance rose 15.23%. The stock lost -26.21% in the past year, while it has gained 13.03% so far this year. A look at the trailing 12-month EPS for STNE yields -0.87 with Next year EPS estimates of 3.13. For the next quarter, that number is 0.61. This implies an EPS growth rate of -251.30% for this year and 89.43% for next year. EPS is expected to grow by 64.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -59.80%.
Float and Shares Shorts:
At present, 312.40 million STNE shares are outstanding with a float of 247.08 million shares on hand for trading. On Oct 13, 2022, short shares totaled 19.52 million, which was 6.25% higher than short shares on Sep 14, 2022. In addition to Mr. Thiago dos Santos Piau as the firm’s Chief Exec. Officer, Mr. Augusto Barbosa Estellita Lins serves as its Pres.
Through their ownership of 71.33% of STNE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.31% of STNE, in contrast to 23.72% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in STNE with 5.22% of the stake, BlackRock Fund Advisors holds 14,660,524 shares worth 14,660,524. A second-largest stockholder of STNE, Berkshire Hathaway, Inc., holds 10,695,448 shares, controlling over 3.81% of the firm’s shares. Nikko Asset Management Americas, is the third largest shareholder in STNE, holding 9,596,824 shares or 3.42% stake. With a 2.24% stake in STNE, the Fidelity Inv. Trust – Emerging Ma is the largest stakeholder. A total of 6,290,200 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.20% of STNE stock, is the second-largest Mutual Fund holder. It holds 6,166,423 shares valued at 58.21 million. Nikko Asset Global Fintech Equity holds 1.52% of the stake in STNE, owning 4,251,674 shares worth 40.14 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STNE since 21 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STNE analysts setting a high price target of $89.37 and a low target of $31.12, the average target price over the next 12 months is $63.31. Based on these targets, STNE could surge 737.58% to reach the target high and rise by 191.66% to reach the target low. Reaching the average price target will result in a growth of 493.35% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STNE will report FY 2022 earnings on 03/15/2024. Analysts have provided yearly estimates in a range of $2.08 being high and $0.89 being low. For STNE, this leads to a yearly average estimate of $1.57. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. StoneCo Ltd. surprised analysts by $0.04 when it reported $0.10 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.88 and the low estimate is $0.52. The average estimate for the next quarter is thus $0.63.