Square (SQ) Stock Price Down 8.6% on Insider Selling

Square, Inc. (NYSE:SQ)’s share price traded down 8.6% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $83.55 and last traded at $86.06. 30,343,166 shares changed hands during trading, an increase of 142% from the average session volume of 12,555,535 shares. The stock had previously closed at $94.11.

Specifically, insider Sivan Whiteley sold 1,875 shares of the stock in a transaction dated Thursday, August 2nd. The shares were sold at an average price of $69.84, for a total transaction of $130,950.00. Following the sale, the insider now owns 526,299 shares of the company’s stock, valued at approximately $36,756,722.16. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Jack Dorsey sold 103,035 shares of the stock in a transaction dated Wednesday, October 3rd. The stock was sold at an average price of $97.67, for a total transaction of $10,063,428.45. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,785,475 shares of company stock worth $147,900,923. 27.99% of the stock is owned by insiders.

A number of brokerages have commented on SQ. SunTrust Banks increased their price objective on shares of Square from $45.00 to $66.00 and gave the stock a “hold” rating in a report on Friday, June 29th. Citigroup increased their price objective on shares of Square from $47.00 to $67.00 and gave the stock a “neutral” rating in a report on Thursday, June 28th. KeyCorp reissued an “overweight” rating and set a $70.00 price objective (up previously from $55.00) on shares of Square in a report on Tuesday, June 19th. Zacks Investment Research lowered shares of Square from a “hold” rating to a “sell” rating in a report on Tuesday, July 3rd. Finally, Piper Jaffray Companies increased their price objective on shares of Square to $63.00 and gave the stock a “neutral” rating in a report on Tuesday, July 10th. Four investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Square presently has a consensus rating of “Hold” and an average price target of $68.22.

The stock has a market cap of $40.64 billion, a price-to-earnings ratio of -843.00 and a beta of 4.33. The company has a debt-to-equity ratio of 0.99, a quick ratio of 2.18 and a current ratio of 2.18.

Square (NYSE:SQ) last announced its quarterly earnings results on Wednesday, August 1st. The technology company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.14. The business had revenue of $385.00 million for the quarter, compared to the consensus estimate of $367.99 million. Square had a negative net margin of 2.30% and a negative return on equity of 3.18%. Square’s revenue for the quarter was up 60.4% on a year-over-year basis. During the same period last year, the company posted $0.07 EPS. Equities research analysts expect that Square, Inc. will post -0.04 EPS for the current year.

Large investors have recently made changes to their positions in the stock. Centaurus Financial Inc. acquired a new stake in Square during the 2nd quarter worth approximately $100,000. Huntington National Bank raised its holdings in Square by 1,725.0% during the 2nd quarter. Huntington National Bank now owns 1,825 shares of the technology company’s stock worth $112,000 after buying an additional 1,725 shares during the period. Envestnet Asset Management Inc. raised its holdings in Square by 1,476.2% during the 1st quarter. Envestnet Asset Management Inc. now owns 2,317 shares of the technology company’s stock worth $114,000 after buying an additional 2,170 shares during the period. McKinley Carter Wealth Services Inc. acquired a new stake in Square during the 1st quarter worth approximately $138,000. Finally, Rehmann Capital Advisory Group raised its holdings in Square by 649.8% during the 2nd quarter. Rehmann Capital Advisory Group now owns 2,317 shares of the technology company’s stock worth $143,000 after buying an additional 2,008 shares during the period. Institutional investors and hedge funds own 51.86% of the company’s stock.

Square Company Profile (NYSE:SQ)

Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.

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