StoneCo (NASDAQ:STNE) Shares Gap Up Following Analyst Upgrade

StoneCo Ltd. (NASDAQ:STNE) shares gapped up before the market opened on Wednesday after Zacks Research upgraded the stock from a strong sell rating to a hold rating. The stock had previously closed at $13.73, but opened at $14.63. StoneCo shares last traded at $14.6750, with a volume of 1,916,898 shares trading hands.

A number of other brokerages also recently commented on STNE. Santander downgraded shares of StoneCo from an “outperform” rating to a “neutral” rating in a research note on Thursday, January 29th. Weiss Ratings restated a “sell (d+)” rating on shares of StoneCo in a report on Thursday, January 22nd. The Goldman Sachs Group dropped their price target on StoneCo from $22.00 to $19.00 and set a “buy” rating on the stock in a research report on Tuesday, January 27th. BTIG Research restated a “buy” rating and issued a $22.00 price objective on shares of StoneCo in a report on Tuesday. Finally, UBS Group dropped their target price on shares of StoneCo from $20.00 to $19.50 and set a “buy” rating on the stock in a report on Wednesday, January 28th. Seven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $17.50.

Trending Headlines about StoneCo

Here are the key news stories impacting StoneCo this week:

• Positive Sentiment: Management raised FY‑2027 and FY‑2026 EPS guidance well above consensus (FY‑2027: 2.19–2.48 vs. consensus ~1.91; FY‑2026: 2.00–2.11 vs. consensus ~1.95), signaling better-than-expected profitability expectations that can justify re-rating. (Guidance update)
• Positive Sentiment: BTIG issued a “Buy” rating on StoneCo, providing buy-side support that can attract demand from investors who follow broker recommendations. Article Title
• Positive Sentiment: Zacks Research upgraded StoneCo from “strong sell” to “hold”, reducing bearish analyst pressure and removing a negative rating from the consensus picture. Article Title
• Positive Sentiment: Investor commentary advocating an aggressive buyback strategy suggests management or activists could pursue share repurchases, which would be supportive of the stock if executed. Article Title
• Neutral Sentiment: Q4 earnings call coverage highlighted robust financial growth alongside strategic shifts — useful context for investors but mixed on whether near‑term trends improve. Article Title
• Neutral Sentiment: Benzinga summarized multiple analyst views (a mix of buys, holds and sells), reflecting no clear consensus that would drive a sustained one‑way move absent fresh catalysts. Article Title
• Negative Sentiment: A Seeking Alpha note downgraded StoneCo from Buy to Hold, arguing Q4 weakness, pricing-driven zero card growth, rising churn and margin pressure justify a lower multiple — this critique could weigh on investor confidence and valuation. Article Title

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. boosted its holdings in StoneCo by 11,473.3% in the fourth quarter. Blue Trust Inc. now owns 1,736 shares of the company’s stock worth $26,000 after acquiring an additional 1,721 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in shares of StoneCo in the 4th quarter valued at approximately $28,000. Advisory Services Network LLC acquired a new stake in StoneCo in the 3rd quarter worth approximately $37,000. Ensign Peak Advisors Inc purchased a new stake in StoneCo during the 4th quarter worth approximately $33,000. Finally, Torren Management LLC acquired a new position in StoneCo during the 4th quarter valued at approximately $35,000. 73.19% of the stock is owned by institutional investors and hedge funds.

StoneCo Price Performance

The stock’s 50 day simple moving average is $15.85 and its 200-day simple moving average is $16.59. The firm has a market cap of $3.94 billion, a price-to-earnings ratio of 9.01, a price-to-earnings-growth ratio of 0.25 and a beta of 1.78. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.43 and a current ratio of 1.37.

StoneCo (NASDAQ:STNE) last announced its quarterly earnings data on Monday, March 2nd. The company reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.02. StoneCo had a net margin of 15.38% and a return on equity of 21.55%. The firm had revenue of $675.42 million for the quarter, compared to analyst estimates of $704.26 million. Equities research analysts anticipate that StoneCo Ltd. will post 1.16 EPS for the current fiscal year.

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.