Square (SQ): What’s the Story?

Square (SQ) is an interesting player in the Technology space, with a focus on Internet Software & Services. The stock has been active on the tape, currently trading at $18.61, up from yesterday’s close by 2.03%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Square (SQ) currently trades with a market capitalization of $6.83 Billion. That value represents a market adjusting for revenues that have been growing by 20.72 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For SQ, the company currently has $474.16 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $-2.71 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-0.08 on a per share basis this quarter. Perhaps, that suggests something about why 0.46% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Square recorded a 52-week high of $18.45. It is now trading -0.16% off that level. The stock is trading $17.05 its 50-day moving average by -1.56%. The stock carved out a 52-week low down at $8.42.

In recent action, Square (SQ) has made a move of +7.70% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 9.43, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 40.89% with $36.41 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of SQ.

Previous articleDigging Up the Facts on Simon Property Group, Inc. (SPG)
Next articleHow Does Vulcan Materials Company (VMC) Stack Up Right Now?