Why StoneCo Sank Like a Stone Today
Brazil-based fintech StoneCo (NASDAQ: STNE) left investors cold on Thursday. The company's shares took a nasty, nearly 15% hit to their price on the day. This appears to be due to a combination of a post-earnings sell-off and a price target cut from an analyst following the stock.
The cutting party was multinational banking group HSBC, whose analyst Neha Agarwala gave her StoneCo price target a haircut. She reduced this to $13 per share, from the previous $15, while maintaining her hold recommendation on the stock.
The reasons behind Agarwala's move weren't immediately clear. We do know that it wasn't trailblazing -- last Friday, Bank of America Securities prognosticator Mario Perry acted similarly. He lowered his price target to $14 per share from the preceding $17, and like his HSBC peer he kept his neutral (hold) recommendation.
Source Fool.com
