Square Inc. [NYSE:SQ] shares were trading -1.87% to $142.30 on Friday. Comparativley, The S&P 500 is trading at -2.49%. For the year, the stock is trading 131.79% and the five-day change stands at 5.50%.
SQ’s next earning date is 11/04/2020. Currently, the company is booking earnings per share of 0.45 with the price-to-cash-flow at 1093.00.
The company is also reporting 0.45 earnings per share.
The Bears are coming
Holding a Market Cap of $64.60 billion, Square Inc. has seen a trading range over the last year of $32.33-$170.61.
For the last five days, SQ is up from its last closing price. The average shares trading hands each day is 12.90M, with average 10-day volume coming in at 10.96 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for SQ. When we apply the Elder Force Index to Square Inc., we are seeing an Elder Force Indicator number of -8120317.17.
The recent performance of the stock is another area that can tell traders how to proceed. SQ is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 119.84. Moreover, the company’s enterprise value has gone from $45.14B to $21.84B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, SQ made a profit of 596.76 million. Square Inc. also saw quarter revenue growth year over year of 42.91%. In addition, the company has operating cash flow of $148.03 million.
Looking at popular technical indicators, the company’s 5-day moving average is 147.94 compared to the 50-day moving average of 148.50. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. SQ currently holds a 9-day RSI of 44.43%, while 100-day RSI stands at 56.95%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. SQ’s 9-day MACD is -0.49 and the company’s 100-day MACD stands at 28.72.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.23% by insiders and 74.35% by institutions. Regarding institutional holdings, Morgan Stanley owns 9.48%, while the second top holder, Vanguard Group, Inc. (The), currently owns 7.45%.
Over the last six months, insiders have sold 200,000 with the most recent transaction from McKelvey James Morgan Jr., Director, with a sell at price 153.93 per share.
Overall, the recommended rating for SQ is Moderate Buy. Currently, the company has 32 analysts watching the stock, and the average quarterly earnings estimate is 0.16. Quarterly revenue estimates are averaging 2.05B with the high estimate reaching 2.49B and the low at 1.45B.
To review, the current 1-year target estimate is sitting at 147.98, while the current price 142.30. Based on this, we expect the stock to rise considering the aforementioned fundamentals.