StoneCo's 15-minute chart has triggered an oversold RSI and a Golden Cross on the KDJ indicator, which occurred on July 18, 2025 at 12:45. This suggests that the stock price has declined precipitously and is now below the level of fundamental support, indicating a potential shift in momentum towards the upside. Consequently, there is a possibility that the stock price could experience further increases.
StoneCo (NASDAQ: STNE) has been in the spotlight recently due to significant technical indicators suggesting a potential shift in momentum. On July 18, 2025, at 12:45, the 15-minute chart of STNE triggered an oversold RSI and a Golden Cross on the KDJ indicator. This combination of technical signals indicates that the stock price has been declining and may be poised for a rebound.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. An oversold RSI reading below 30 typically suggests that the stock has been over-sold and could be due for a price correction. The Golden Cross, on the other hand, occurs when a shorter-term moving average crosses above a longer-term moving average. This signal often indicates a bullish trend change.
The stock has been the subject of numerous analyst upgrades and downgrades recently. JPMorgan Chase & Co. recently raised its target price for STNE from $15.50 to $18.50, reflecting a potential upside of 24.08% [1]. Other analysts have also expressed positive sentiments, with Santander upgrading STNE from a "neutral" to an "outperform" rating and Citigroup raising its price objective from $9.00 to $15.00 [1].
However, despite these positive analyst ratings, STNE has been trading down, hitting a low of $14.91 during mid-day trading on July 18, 2025. The stock has a market capitalization of $4.26 billion, a price-to-earnings ratio of -19.12, and a beta of 1.94. The company's debt-to-equity ratio is 0.74, and its quick ratio is 1.39, indicating a relatively healthy financial position.
Institutional investors have also been showing interest in STNE. Farther Finance Advisors LLC, GAMMA Investing LLC, CWM LLC, Jones Financial Companies Lllp, and Sterling Capital Management LLC have all significantly increased their holdings in the stock in recent quarters [1].
The upcoming earnings report on August 7, 2025, will be crucial for investors. Analysts expect STNE to post earnings of $0.34 per share, representing a year-over-year growth of 13.33%. The Zacks Consensus Estimates project full-year earnings of $1.44 per share and revenue of $2.73 billion, demonstrating changes of +6.67% and +10.94%, respectively, from the preceding year [2].
While the technical indicators suggest a potential upside, investors should remain cautious and consider the broader market conditions. The stock has been trading below its 50-day and 200-day simple moving averages, which could indicate a longer-term bearish trend.
References:
[1] https://www.marketbeat.com/instant-alerts/stoneco-nasdaqstne-price-target-raised-to-1850-2025-07-16/
[2] https://finance.yahoo.com/news/heres-why-stoneco-ltd-stne-215002163.html
Comments
No comments yet