Square Inc. [NYSE: SQ] plunged by -$8.02 during the normal trading session on Friday and reaching a high of $254.36 during the day while it closed the day at $247.26. The company report on August 2, 2021 that Square, Inc. Announces Plans to Acquire Afterpay, Strengthening and Enabling Further Integration Between its Seller and Cash App Ecosystems.
Brings together two of the fastest growing global fintech companies to advance shared mission of economic empowerment and financial inclusion.
Square, Inc. (NYSE: SQ) and Afterpay Limited (ASX: APT) announced that they have entered into a Scheme Implementation Deed under which Square has agreed to acquire all of the issued shares in Afterpay by way of a recommended court-approved Scheme of Arrangement. The transaction has an implied value of approximately US$29 billion (A$39 billion) based on the closing price of Square common stock on July 30, 2021, and is expected to be paid in all stock. The acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes. The closing of the transaction is expected in the first quarter of calendar year 2022, subject to the satisfaction of certain closing conditions outlined below.
Square Inc. stock has also loss -6.34% of its value over the past 7 days. However, SQ stock has inclined by 1.00% in the 3 months of the year. Over the past six months meanwhile, it has gained 14.49% and gained 13.61% year-on date.
The market cap for SQ stock reached $116.25 billion, with 454.97 million shares outstanding and 386.78 million shares in the current float. Compared to the average trading volume of 8.61M shares, SQ reached a trading volume of 7489495 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Square Inc. [SQ]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SQ shares is $277.65 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SQ stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
DA Davidson have made an estimate for Square Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 24, 2021. While these analysts kept the previous recommendation, Needham raised their target price from $300 to $310. The new note on the price target was released on April 13, 2021, representing the official price target for Square Inc. stock. Previously, the target price had yet another raise to $250, while Keefe Bruyette analysts kept a Outperform rating on SQ stock.
The Average True Range (ATR) for Square Inc. is set at 9.05, with the Price to Sales ratio for SQ stock in the period of the last 12 months amounting to 8.82. The Price to Book ratio for the last quarter was 48.58, with the Price to Cash per share for the same quarter was set at 7.80. Price to Free Cash Flow for SQ in the course of the last twelve months was 7175.73 with Quick ratio for the last quarter at 1.70.
SQ stock trade performance evaluation
Square Inc. [SQ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.34. With this latest performance, SQ shares gained by 1.42% in over the last four-week period, additionally plugging by 14.49% over the last 6 months – not to mention a rise of 91.48% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SQ stock in for the last two-week period is set at 51.17, with the RSI for the last a single of trading hit 47.49, and the three-weeks RSI is set at 52.55 for Square Inc. [SQ]. The present Moving Average for the last 50 days of trading for this stock 234.35, while it was recorded at 254.97 for the last single week of trading, and 224.65 for the last 200 days.
Square Inc. [SQ]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Square Inc. [SQ] shares currently have an operating margin of +1.78 and a Gross Margin at +28.01. Square Inc.’s Net Margin is presently recorded at +2.24.
Return on Total Capital for SQ is now 3.97, given the latest momentum, and Return on Invested Capital for the company is 5.06. Return on Equity for this stock inclined to 9.69, with Return on Assets sitting at 2.96. When it comes to the capital structure of this company, Square Inc. [SQ] has a Total Debt to Total Equity ratio set at 112.97. Additionally, SQ Total Debt to Total Capital is recorded at 53.04, with Total Debt to Total Assets ending up at 30.69. Long-Term Debt to Equity for the company is recorded at 111.00, with the Long-Term Debt to Total Capital now at 52.12.
Reflecting on the efficiency of the workforce at the company, Square Inc. [SQ] managed to generate an average of $38,909 per employee. Receivables Turnover for the company is 9.97 with a Total Asset Turnover recorded at a value of 1.32.Square Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.70.
Earnings per share (EPS) analysis for Square Inc. [SQ] stock
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SQ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Square Inc. go to 54.48%.
Square Inc. [SQ]: Insider Ownership positions
There are presently around $71,315 million, or 75.10% of SQ stock, in the hands of institutional investors. The top three institutional holders of SQ stocks are: MORGAN STANLEY with ownership of 28,466,309, which is approximately 0.784% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 24,565,270 shares of the stock with an approximate value of $6.07 billion in SQ stocks shares; and BLACKROCK INC., currently with $5.39 billion in SQ stock with ownership of nearly 4.062% of the company’s market capitalization.
Positions in Square Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 736 institutional holders increased their position in Square Inc. [NYSE:SQ] by around 23,472,096 shares. Additionally, 537 investors decreased positions by around 27,999,398 shares, while 143 investors held positions by with 236,950,064 shares. The mentioned changes placed institutional holdings at 288,421,558 shares, according to the latest SEC report filing. SQ stock had 185 new institutional investments in for a total of 4,503,796 shares, while 122 institutional investors sold positions of 5,724,490 shares during the same period.