Square (NYSE:SQ) Downgraded to “Sell” at UBS Group

Square (NYSE:SQ) was downgraded by equities researchers at UBS Group from a “neutral” rating to a “sell” rating in a research report issued on Thursday, MarketBeat reports. They presently have a $63.00 target price on the technology company’s stock, up from their prior target price of $54.00. UBS Group’s target price suggests a potential downside of 23.21% from the company’s previous close.

Several other research analysts have also recently weighed in on SQ. Stephens cut shares of Square from an “overweight” rating to an “equal weight” rating in a research report on Monday. They noted that the move was a valuation call. Oppenheimer initiated coverage on shares of Square in a research report on Wednesday, May 6th. They set a “hold” rating for the company. Cantor Fitzgerald dropped their target price on shares of Square from $91.00 to $66.00 and set an “overweight” rating for the company in a research report on Friday, March 27th. Rosenblatt Securities dropped their target price on shares of Square from $72.00 to $52.00 and set a “neutral” rating for the company in a research report on Tuesday, March 24th. Finally, Susquehanna Bancshares boosted their price target on shares of Square from $70.00 to $85.00 in a report on Thursday, May 7th. Five research analysts have rated the stock with a sell rating, nineteen have given a hold rating and seventeen have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $68.93.

NYSE:SQ opened at $82.04 on Thursday. Square has a 1 year low of $32.33 and a 1 year high of $87.25. The firm has a 50 day moving average of $63.11 and a 200-day moving average of $66.39. The company has a current ratio of 2.19, a quick ratio of 2.19 and a debt-to-equity ratio of 1.17. The stock has a market capitalization of $34.82 billion, a P/E ratio of 130.22 and a beta of 2.63.

Square (NYSE:SQ) last posted its earnings results on Wednesday, May 6th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.15). Square had a net margin of 5.99% and a return on equity of 0.44%. The firm had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm posted ($0.06) EPS. The business’s revenue was up 44.0% on a year-over-year basis. As a group, analysts forecast that Square will post -0.44 EPS for the current fiscal year.

In other news, insider Jacqueline D. Reses sold 25,000 shares of the company’s stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $60.00, for a total value of $1,500,000.00. Following the sale, the insider now directly owns 228,525 shares of the company’s stock, valued at approximately $13,711,500. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Jacqueline D. Reses sold 24,255 shares of the company’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $63.20, for a total transaction of $1,532,916.00. Following the completion of the sale, the insider now directly owns 242,100 shares in the company, valued at $15,300,720. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 69,722 shares of company stock worth $4,175,244. Insiders own 21.79% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Balentine LLC acquired a new position in shares of Square during the 1st quarter valued at $25,000. Shine Investment Advisory Services Inc. lifted its position in shares of Square by 316.7% during the 1st quarter. Shine Investment Advisory Services Inc. now owns 500 shares of the technology company’s stock valued at $26,000 after acquiring an additional 380 shares during the period. Stonebridge Financial Planning Group LLC acquired a new position in shares of Square during the 4th quarter valued at $29,000. Americana Partners LLC acquired a new position in shares of Square during the 4th quarter valued at $29,000. Finally, Atticus Wealth Management LLC lifted its position in shares of Square by 114.5% during the 1st quarter. Atticus Wealth Management LLC now owns 562 shares of the technology company’s stock valued at $29,000 after acquiring an additional 300 shares during the period. 58.60% of the stock is currently owned by institutional investors.

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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