Zacks Investment Research Upgrades Square (SQ) to Buy

Zacks Investment Research upgraded shares of Square (NYSE:SQ) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning, Zacks.com reports. They currently have $77.00 price target on the technology company’s stock.

According to Zacks, “Square reported impressive first quarter results wherein both earnings and revenues have reflected year over year growth on the back of strengthening gross payments volume. Moreover, strengthening relationship with sellers contributed well to the payment volume growth. Further, contributions from Weebly and Zesty buyouts continued to aid the top-line growth during the quarter. Also, product lines such as Square Terminal, Square Stand, Instant Deposits, Square Invoices, Cash Card, Square Register and Caviar performed well during the quarter. Further, growing adoption of Cash App in the bitcoin space remained a tailwind for Square’s business growth. Notably, the stock has outperformed the industry it belongs to over a year. However, higher investments and increasing product development expenses might hurt margins. Further, intensifying competition and foreign exchange fluctuations remain headwinds.”

SQ has been the subject of a number of other reports. ValuEngine downgraded shares of Square from a strong-buy rating to a buy rating in a research note on Wednesday, May 1st. BMO Capital Markets dropped their price target on shares of Square to $90.00 and set a market perform rating for the company in a research note on Friday, May 3rd. SunTrust Banks dropped their price target on shares of Square to $65.00 and set a hold rating for the company in a research note on Thursday, May 2nd. Needham & Company LLC reissued a buy rating and set a $90.00 price target (down from $95.00) on shares of Square in a research note on Thursday, May 2nd. Finally, Wedbush reissued a neutral rating and set a $75.00 price target on shares of Square in a research note on Thursday, May 2nd. Three analysts have rated the stock with a sell rating, thirteen have issued a hold rating and twenty-one have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $86.14.

Shares of NYSE SQ opened at $65.99 on Tuesday. Square has a 1-year low of $49.82 and a 1-year high of $101.15. The stock has a market capitalization of $27.86 billion, a price-to-earnings ratio of 3,299.50, a P/E/G ratio of 17.61 and a beta of 3.49. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 0.91.

Square (NYSE:SQ) last announced its earnings results on Wednesday, May 1st. The technology company reported ($0.01) earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.08 by ($0.09). Square had a positive return on equity of 1.86% and a negative net margin of 1.47%. The company had revenue of $489.00 million during the quarter, compared to the consensus estimate of $479.63 million. During the same period in the prior year, the firm posted $0.06 earnings per share. The company’s revenue was up 59.3% on a year-over-year basis. On average, equities research analysts anticipate that Square will post 0.15 earnings per share for the current year.

In related news, insider Jacqueline D. Reses sold 5,000 shares of the company’s stock in a transaction dated Friday, May 3rd. The shares were sold at an average price of $68.35, for a total value of $341,750.00. Following the transaction, the insider now directly owns 413,593 shares in the company, valued at $28,269,081.55. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jack Dorsey sold 103,035 shares of the company’s stock in a transaction dated Wednesday, February 13th. The shares were sold at an average price of $76.45, for a total transaction of $7,877,025.75. The disclosure for this sale can be found here. Insiders sold 902,676 shares of company stock worth $68,723,099 over the last 90 days. 27.99% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in SQ. Lenox Wealth Management Inc. acquired a new position in shares of Square in the first quarter valued at about $25,000. Legacy Advisors LLC acquired a new stake in Square during the first quarter worth about $27,000. FTB Advisors Inc. acquired a new stake in Square during the first quarter worth about $27,000. Pearl River Capital LLC acquired a new stake in Square during the fourth quarter worth about $28,000. Finally, Johnson Financial Group Inc. acquired a new stake in Square during the fourth quarter worth about $28,000. Institutional investors and hedge funds own 52.10% of the company’s stock.

Square Company Profile

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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Analyst Recommendations for Square (NYSE:SQ)

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