StoneCo Shares Soar 3.49% on Strong Earnings, Acquisition Talks

StoneCo(STNE) shares surged 3.49% today, marking the third consecutive day of gains, with a cumulative increase of 9.21% over the past three days. The stock price reached its highest level since August 2024, with an intraday gain of 5.31%.

StoneCo's stock has shown a strong upward trend, with a 25.1% increase over the past four weeks. This momentum aligns with the company's current ranking as a Strong Buy, reflecting positive investor sentiment and expectations for future growth.

StoneCo reported impressive financial results for 2024, with notable increases in MSMB TPV, retail deposits, and net income, all exceeding their respective guidance figures. The company also achieved significant growth in its credit portfolio and maintained a robust adjusted net cash position, which has likely bolstered investor confidence.

Totvs has resumed negotiations to acquire StoneCo's Linx unit, with an exclusivity agreement in place. The potential acquisition, subject to regulatory approvals, could impact StoneCo's stock price depending on the transaction's outcome and market perception.

Analysts have set an average price target for StoneCo at $14.08, with a range between $5.99 and $18.96, indicating a potential upside from the current price. The consensus recommendation suggests an "Outperform" status, reflecting positive expectations from the analyst community.