Why StoneCo Ltd. (STNE) Stock Price Dropped Up To -3.01% Today

StoneCo Ltd. (NASDAQ:STNE) is a stock to watch today. At current price of $26.06, the shares have already lost -0.81 points (-3.01% lower) from its previous close of $26.87. The stock sets an active trading volume day with a reported 934586 contracts so far this session. STNE shares had a relatively better volume day versus average trading capacity of 4.52 million shares, but with a 0.11 billion float and a -2.96% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for STNE stock indicates that the average analyst price target is $32.52 per share. This means the stock has a potential increase of 24.79% from where the STNE share price has been trading recently which is between $26.31 and $27.75. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $20.

The shorts are running away from StoneCo Ltd. (STNE) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in STNE shares. While short interest still represents only 9.58% of STNE’s float, the number of shares shorted have fallen by -1036237. The number of shares shorted fell to 9678030 shares, down from 10714267 shares during the preceding fortnight. With average daily trading volumes at 7829348 shares, days to cover decreased to about 1.707745 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Do Options Traders Know Something About StoneCo (STNE) Stock We Don’t?” and dated May 16, 2019.

Looking at the current readings for StoneCo Ltd., the two-week RSI stands at 37.05. This figure suggests that STNE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current STNE readings is similarly very revealing as it has a stochastic reading of 29.09% at this stage. This figure means that STNE share price today is being overbought.

Technical chart claims that StoneCo Ltd. (STNE) would settle between $27.64/share to $28.42/share level. However, if the stock price goes below the $26.2 mark, then the market for StoneCo Ltd. becomes much weaker. If that happens, the stock price might even plunge as low as $25.54 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.51. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at HSBC Securities, assumed coverage of STNE assigning Reduce rating, according to their opinion released on May 08. Citigroup analysts have lowered their rating of StoneCo Ltd. (NASDAQ:STNE) stock from Buy to Neutral in a separate flash note issued to investors on April 05. Analysts at Morgan Stanley are sticking to their Overweight stance. However, on March 21, they lifted price target for these shares to $47 from $35.