Square stock: buy or sell
Updated on:
Jan 27th, 2021
1
Square stock brief
- Square stock dropped -3.45% to close at $209.17 on the stock market on Tuesday.
- The price is currently below the lower Bollinger band, which usually indicates a short-term bounce that you better not try to trade
- Price is drawing a scaled uptrend since March 2020 with higher tops and higher bottoms. Up to date, price made a 546.98% gain since the beginning of this rally
- Square, Inc. provides, together with its subsidiaries, payment and point-of-sale solutions in the United States and internationally.
Should I buy Square stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SQ stock a buy?
Currently, Square stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $SQ will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Square stock?
When is it time to sell Square stock?. In the same way as when we have to buy shares, determining when is the best time to sell is not a haphazard decision, and we must follow our own trading strategy. When selling, as well as buying, our setups are very simple to use but are only valid for selling shares you already own, not for selling short $SQ stock
A golden rule is that you must never keep a trade that generates greater losses than those expected at the time of the buy. When to sell shares should always be determined by the stop-loss (automatic or manual)
Is it time to sell Square stock?
Currently, Square stock doesn't match any of our preferred sell setups, so if you own Square shares and your operation is in profit probably is not time to sell now
Price lost SMA50 level
Since Square moved up above the 50-d SMA last November shares gained a 31.58%. Nevertheless that positive trend may have come to an end, or show some signs of weakening, by now that the price lost that moving average level on Tuesday. For medium-term investors who profited from the stock while the price was above the average, this signal should be a wake-up call and a reason to sell the stock and cash in on their gains
Square ratings
In the last month, 3 analyst ratings were published for Square
| Brokerage firm | Rating |
|---|---|
| Jan 6th, 2021 | |
| Truist | Neutral |
| Jan 14th, 2021 | |
| Evercore ISI | Buy → Neutral |
| Jan 15th, 2021 | |
| KeyCorp | Buy |
Square stock analysis
Since in March 2020, Square has been printing an uptrend that by now marked an amazing 546.98%. During this uptrend, the price provided some buy points on the breakouts. Latest low was last November, when price bounced at $151.10. Like in all uptrends, price needs to take breath and currently price is consolidating the gains in a range between $246.49 and $151.10
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Price readings both above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme upward or downward values. For this case, the price is below the upper band, and that should mean a near-term bounce off (at least) until it is back above the band
Relative strength index
The RSI dropped below the overbought level of 70 in late December after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Tuesday was 40.36. Since then, Square stock dropped a 13.42%
Square stock price history
Square started trading on Nov 19th, 2015 at $11.20 per share1. Since then, SQ stock surged by 1,767.59%, with an average of 353.52% per year. An investment of thousand dollars on Nov 2015 would have a value of $18,675.89 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Square stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations issue their analysis predicting how a stock will performance in the future.
The following table shows the price predictions posted by brokerage institutions in the last month. If you are a small investor you must not trade based on these projections.
There are 3 price forecasts issued for Square that average $293.00. Square closed at $209.17 on Tuesday, that is a 28.61% than the predicted price.
| Brokerage firm | Price target |
|---|---|
| Jan 6th, 2021 | |
| Truist | $250.00 → $300.00 |
| Jan 14th, 2021 | |
| Evercore ISI | $300.00 → $304.00 |
| Jan 15th, 2021 | |
| KeyCorp | $250.00 → $275.00 |
Earnings and financials
Last November, Square, Inc. ($SQ) reported EPS for that highly beat analysts' expectations. Quarterly EPS was $0.34 per share vs the estimates of $0.16. This quarterly report represents an earnings surprise of 112.50%. Predicted turnover for this quarter was $2.1 billion but Square highly improved by 46.57%, posting $3.0 billion.
Compared to the same quarter last year, EPS was $0.25, so current EPS means a gain of 36.00%. Revenue skyrocketed a 139.55% on an annualized basis in the , from $12.7B to $30.3B last quarter.Square ($SQ) is hosting the quarterly earnings call late next February. Wall Street expects of $0.25, compared to Q3 that was $0.34.
Square performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Square ($SQ) | -10.70% | 19.50% | 67.10% |
Important note:
The opinions written in this article are personal and not recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the individual situations of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for education reasons onlySquare summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $217.09 |
| Close | $209.17 |
| Day range | $208.71 - $219 |
| Previous close | $216.64 |
| Session gain | -3.45% |
| Average true range | $11.94 |
| 50d mov avg | $215.99 |
| 100d mov avg | $191.11 |
| 200d mov avg | $147.77 |
| Earnings date | February 24th, 2021 |