StoneCo surges on report of hiring advisers for strategic alternatives

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• Brazilian fintech StoneCo (NASDAQ:STNE) jumped 14% after a report that the company hired a bank and a law firm to consider strategic alternatives.
• StoneCo hired JPMorgan and a law firm to help evaluate strategic alternatives, according to a Brazil Journal story. StoneCO retained law firm Galdino & Coelho, known for its practice of corporate restructuring and dispute resolution.
• The Brazilian publication (Google translated from Portuguese) said the share jump is being caused by traders speculating about a delisting or sale of the company.
• Earlier, StoneCo cut to Neutral at Credit Suisse on poor earnings momentum.
• Bloomberg earlier flagged the Brazil Journal report.
• Recall August 2020, StoneCo agreed to combine its Brazilian operations with Linx.
• Keep in mind that Seeking Alpha flags STNE at risk of performing badly when compared with its peers.