UBS Group Downgrades Square (NYSE:SQ) to Sell

Square (NYSE:SQ) was downgraded by equities researchers at UBS Group from a “neutral” rating to a “sell” rating in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. They presently have a $63.00 price objective on the technology company’s stock, up from their prior price objective of $54.00. UBS Group’s target price suggests a potential downside of 22.69% from the company’s previous close.

Several other research analysts have also weighed in on the company. Compass Point lowered Square from a “neutral” rating to a “sell” rating and set a $50.00 price objective for the company. in a research report on Tuesday, April 28th. SunTrust Banks lifted their price objective on Square from $70.00 to $83.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Canaccord Genuity lifted their price objective on Square from $60.00 to $80.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Raymond James lowered Square from a “market perform” rating to an “underperform” rating in a research report on Thursday, April 16th. Finally, Nomura reaffirmed a “hold” rating and issued a $49.00 target price on shares of Square in a research report on Thursday, May 7th. Five equities 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. Square currently has a consensus rating of “Hold” and an average price target of $68.93.

NYSE:SQ remained flat at $$81.49 during trading hours on Thursday. The company had a trading volume of 6,193,079 shares, compared to its average volume of 14,014,477. The company has a market cap of $35.80 billion, a PE ratio of 129.35 and a beta of 2.63. The company has a quick ratio of 2.19, a current ratio of 2.19 and a debt-to-equity ratio of 1.17. Square has a twelve month low of $32.33 and a twelve month high of $87.25. The business’s 50 day moving average is $64.23 and its two-hundred day moving average is $66.59.

Square (NYSE:SQ) last announced its earnings results on Wednesday, May 6th. The technology company reported ($0.02) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.13 by ($0.15). Square had a return on equity of 0.44% and a net margin of 5.99%. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the prior year, the business earned ($0.06) earnings per share. The firm’s revenue for the quarter was up 44.0% on a year-over-year basis. On average, research analysts anticipate that Square will post -0.44 EPS for the current year.

In related news, 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 value of $1,532,916.00. Following the completion of the transaction, the insider now directly owns 242,100 shares in the company, valued at $15,300,720. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Sivan Whiteley sold 1,945 shares of the company’s stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $54.78, for a total transaction of $106,547.10. Following the sale, the insider now owns 107,975 shares of the company’s stock, valued at $5,914,870.50. The disclosure for this sale can be found here. In 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 hedge funds and other institutional investors have recently made changes to their positions in SQ. Stonebridge Financial Planning Group LLC purchased a new stake in Square in the fourth quarter worth approximately $29,000. Americana Partners LLC purchased a new stake in Square in the fourth quarter worth approximately $29,000. Balentine LLC purchased a new stake in Square in the first quarter worth approximately $25,000. Shine Investment Advisory Services Inc. boosted its holdings in Square by 316.7% in the first quarter. Shine Investment Advisory Services Inc. now owns 500 shares of the technology company’s stock worth $26,000 after purchasing an additional 380 shares during the last quarter. Finally, Acadian Asset Management LLC purchased a new stake in Square in the fourth quarter worth approximately $34,000. 58.60% of the stock is owned by institutional investors and hedge funds.

About Square

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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