StoneCo Ltd. ( STNE ) shares are trading lower Tuesday after the company reported mixed fourth-quarter financial results after the market close Monday.

The Details:

The company reported quarterly earnings of 36 cents per share which beat the analyst consensus estimate of 30 cents. 

Quarterly sales came in at $655.87 million, which missed the analyst consensus estimate of $683.63 million by 4.06%. This represents growth of 20.1% year-over-year and primarily driven by a 24.4% increase in financial services platform revenues, a result of active client base growth and higher monetization from clients, mainly in its MSMB segment.

"Our top priority, ‘Winning in MSMBs,' posted remarkable growth. We achieved a notable increase in MSMB TPV both annually and in the fourth quarter, showing an acceleration from the previous period. Our banking services also recorded impressive growth, with deposits reaching R$6.1 billion by the end of December, a significant increase from 2022," said Pedro Zinner, CEO of StoneCo ( STNE ). 

StoneCo ( STNE ) shares are dropping on above-average trading volume following the print. According to data from Benzinga Pro, more than 9.3 million shares have already been traded in the session, compared to the stock’s 100-day average of 4.784 million shares.

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Should I Sell My STNE Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of StoneCo ( STNE ) have increased by 65.88% in the past year. An investor who bought shares of StoneCo ( STNE ) at the beginning of the year would take a loss of $1.8 per share if they sold it today. The stock has fallen 4.19% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital loss of $2.34.

StoneCo ( STNE ) shares have an all-time high of $70.42, representing 343.59% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. StoneCo ( STNE ) stock currently has an RSI of 94.76, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

STNE Price Action: According to Benzinga Pro, StoneCo ( STNE ) shares are down by more than 6.15% at $16.40 at the time of publication.

Image: Ahmad Ardity from Pixabay