StoneCo Ltd. STNE recently revealed that its board of directors has approved a new share repurchase program. The program has no fixed expiration date, and R$ 2 billion shares are authorized for buyback. This demonstrates StoneCo’s commitment to effectively utilizing its financial resources.

This new program replaces the previously announced stock repurchase program, through which StoneCo successfully purchased 13.2 million shares, with an average of $13.52 each, for a total sum of $178.3 million. The completion of this program further highlights the solid financial position of StoneCo and its commitment to shareholder value enhancement.

Headquartered in George Town, the Cayman Islands, StoneCo provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online and mobile channels in Brazil. In financial services, it offers payments, digital banking and credit solutions, while in software, it provides POS and ERP solutions for different retail and services verticals, CRM, engagement tools, e-commerce and Omnichannel solutions. 

StoneCo continuously evaluates the optimal use of capital to maximize shareholder returns and is now developing a more structured decision-making framework in consultation with its board. In the third quarter of 2024, it generated R$131.5 million of cash from operating activities. As of Sept. 30, 2024, it had R$ 4,013.3 million in cash and cash equivalents. Given its strong balance sheet and liquidity position, StoneCo is expected to be able to sustain its current share repurchase plan, which will continue enhancing shareholders’ wealth.

STNE’s Stock Price Performance

Shares of StoneCo have plunged 30.3% over the past year against the industry’s growth of 44.9%.

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STNE’s Zacks Rank and Other Key Picks

StoneCo currently sports a Zacks Rank #1 (Strong Buy). 

Some other top-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 at present. It is a top-tier provider of electronic contract manufacturing services to original equipment manufacturers in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%. 

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a foremost supplier of enterprise-level software solutions for human resource and finance management. WDAY changes the way analytical insights and contributions to decision-making are made available to businesses by integrating finance and human resources as one system on the cloud. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in the advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular, as well as wireless 3G, 4G, and IEEE 802-related products and networks.

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