Square Stock Could Surge

A price-target hike is boosting SQ stock today

Jun 28, 2018 at 3:00 PM
facebook X logo linkedin


Shares of Square Inc (NYSE:SQ) are popping today, after SunTrust Robinson raised its price target on the payments processor to $66 from $65. At last check, SQ stock was up 1.8% to trade at $60.71 -- and could be headed higher in the near term, if history is any guide.

After topping out at a record high of $69.40 on June 21, Square stock pulled back alongside the rest of the tech sector, and is now within one standard deviation of its 40-day moving average. Following the last seven times this has happened after Square had been trading above this trendline for a significant length of time, the stock went on to average a one-month gain of 7.94%, with the majority of returns positive.

square stock chart june 28

Another move of this magnitude would put SQ shares back near $66 , based on its current perch, and could spark a bigger wave of bullish brokerage attention. Despite the stock's current 76% year-to-date advance, 15 of the 29 analysts covering the equity maintain a "hold" or "sell" recommendation, while the average 12-month price target of $56.33 is a discount to present trading levels.

A round of short covering could also keep the wind at Square's back. The 33.51 million SQ shares sold short account for a healthy 13% of the equity's available float, and would take almost four days to cover, at the average pace of trading.

And the good news for those using call options to bet on Square's next leg higher is that the security has consistently rewarded premium buyers over the past year. This is based on SQ's Schaeffer's Volatility Scorecard (SVS) reading of 95 out of a possible 100, which indicates the equity has tended to make outsized moves in the last 12 months, relative to what the options market has priced in.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI