Major shareholder Madrone Partners trims stake in StoneCo
Venture capital firm Madrone Partners sold 750,000 Class A shares of Brazilian fintech StoneCo, reducing its beneficial ownership to 10.6 percent.
A prominent U.S. investment firm has reduced its position in one of Latin America's largest payment processors, signaling a shift in institutional exposure ahead of the company's upcoming quarterly earnings. In a regulatory disclosure filed with the U.S. Securities and Exchange Commission on October 7, 2026, venture capital firm Madrone Partners, L.P. reported trimming its holdings in Brazilian financial technology company StoneCo Ltd.
The open-market transaction took place on October 5, 2026, with Madrone Partners selling 750,000 Class A common shares. According to the SEC Schedule 13D/A filing, the shares were liquidated at a weighted average price of $11.90, with individual transaction prices ranging from $11.75 to $12.02.
Following the sale, Madrone Partners’ beneficial ownership in the payment processor decreased to 25,228,161 shares, representing approximately 10.6% of StoneCo's outstanding Class A common stock. This is down from its previous position of 27,339,276 shares. Despite the 7.7% reduction in its position, Madrone remains one of the largest institutional backers of the firm.
Earnings and Interest Rate Pressures
The divestment comes as StoneCo prepares to report its third-quarter 2026 financial results on November 12, 2026. The company has faced a challenging macroeconomic environment in Brazil, where the central bank's high benchmark Selic rate has increased funding costs and pressured net income. While StoneCo reported strong first-half results for 2026—nearly doubling its net income to 2.16 billion reais ($428 million)—rising non-performing loans and credit-loss provisions in its expanding credit portfolio have kept analysts cautious.
Political risk also continues to dictate the short-term volatility of Brazil stocks listed in US markets. Brazilian equities experienced a sharp relief rally in early October 2026, driven by municipal election dynamics that signaled a potential shift toward fiscal conservatism. While this political momentum temporarily lifted StoneCo's share price from its 52-week lows, institutional investors like Madrone appear to be using the rebound to manage their exposure.
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StoneCo Ltd. is listed in New York on the Nasdaq, where its Class A common shares trade under the ticker STNE. For retail investors holding diversified emerging market or small-cap funds, the company is a common constituent in vehicles such as the iShares Russell 2000 ETF.