StoneCo (NASDAQ:STNE) Shares Gap Down – Here’s Why

StoneCo Ltd. (NASDAQ:STNE) gapped down before the market opened on Tuesday . The stock had previously closed at $17.03, but opened at $14.68. StoneCo shares last traded at $13.71, with a volume of 4,553,995 shares trading hands.

Key Headlines Impacting StoneCo

Here are the key news stories impacting StoneCo this week:

• Positive Sentiment: Analysts remain supportive — a Benzinga roundup shows multiple analyst views that keep StoneCo on the radar for upside, and BTIG reaffirmed a “buy” with a $22 price target (implying meaningful upside from current levels). Expert Outlook: StoneCo Through The Eyes Of 4 Analysts
• Positive Sentiment: Buyback thesis gaining attention — a Seeking Alpha piece argues for management to accelerate repurchases to create a double‑digit buyback yield, which can support the share price if capital returns are executed. StoneCo: I Am Doubling Down To Secure A Double-Digit Buyback Yield
• Positive Sentiment: EPS slightly beat — Q4 EPS of $0.50 topped consensus of $0.48, demonstrating resilient profitability and supporting forward EPS guidance expectations. StoneCo Ltd (STNE) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Earnings call & presentation posted — management discussed strategic shifts and growth initiatives; read the full transcript and presentation for details on outlook, segment performance and capital allocation. Q4 2025 Earnings Call Transcript Q4 Results Presentation
• Negative Sentiment: Revenue missed estimates — Q4 revenue of $675.4M came in below the ~$704M consensus, signaling softer top‑line demand that could pressure near‑term growth expectations. Earnings Summary: StoneCo Q4
• Negative Sentiment: Adjusted gross profit and impairment headwinds — coverage notes adjusted gross profit for 2025 fell below expectations and StoneCo recorded a Linx-related impairment in Q4, which prompted an intraday stock pullback ahead of today’s bounce. StoneCo stock dips on 2025 adjusted gross profit falling below expectations, Q4 Linx impairment

Analyst Upgrades and Downgrades

STNE has been the topic of a number of research analyst reports. UBS Group lowered their price objective on shares of StoneCo from $20.00 to $19.50 and set a “buy” rating on the stock in a research report on Wednesday, January 28th. Santander cut StoneCo from an “outperform” rating to a “neutral” rating in a report on Thursday, January 29th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of StoneCo in a report on Thursday, January 22nd. Zacks Research cut StoneCo from a “hold” rating to a “strong sell” rating in a research report on Monday, February 2nd. Finally, The Goldman Sachs Group lowered their target price on StoneCo from $22.00 to $19.00 and set a “buy” rating on the stock in a report on Tuesday, January 27th. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $17.50.

StoneCo Stock Performance

The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.43 and a current ratio of 1.37. The stock has a market cap of $4.09 billion, a P/E ratio of 9.34, a P/E/G ratio of 0.24 and a beta of 1.78. The business’s 50-day moving average price is $15.87 and its 200-day moving average price is $16.61.

StoneCo (NASDAQ:STNE) last announced its earnings results on Monday, March 2nd. The company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.02. The company had revenue of $675.42 million for the quarter, compared to analysts’ expectations of $704.26 million. StoneCo had a return on equity of 21.55% and a net margin of 15.38%. As a group, sell-side analysts expect that StoneCo Ltd. will post 1.16 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Tekne Capital Management LLC bought a new position in shares of StoneCo in the second quarter worth approximately $35,288,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in shares of StoneCo during the 2nd quarter valued at $574,000. Ninety One UK Ltd lifted its stake in shares of StoneCo by 218.4% during the 3rd quarter. Ninety One UK Ltd now owns 4,234,251 shares of the company’s stock valued at $80,070,000 after buying an additional 2,904,432 shares in the last quarter. Alta Wealth Advisors LLC purchased a new position in shares of StoneCo during the 3rd quarter valued at $1,631,000. Finally, Fox Run Management L.L.C. boosted its holdings in StoneCo by 72.5% in the 2nd quarter. Fox Run Management L.L.C. now owns 51,420 shares of the company’s stock worth $825,000 after buying an additional 21,604 shares during the period. 73.19% of the stock is currently owned by institutional investors.

StoneCo Company Profile

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.