Square stock is still up 31% in 2019, though
Usually when we check in with Square Inc (NYSE:SQ), it's because of some lofty bull note or bullish activity in its options pits. Today however, Square stock is down 13.7% to trade at $69.92, after the payment processor's quarterly report. While second-quarter earnings and revenue exceeded analyst expectations, Square's third-quarter profit forecast missed its targets thanks to heavy spending on its Cash App business.
Analysts have rushed to adjust their ratings on the stock. Evercore ISI downgraded SQ to "underperform" from "outperform" while trimming its price target to $64 from $101. On the other side of the coin, Suntrust Robinson and Cowen upped their price targets to $75 and $76, respectively.
This is pacing to be Square stock's worst single-day session since November 2017. The drop has the shares breaching their 320-day moving average for the first time since early June. Yet despite today's pullback, the equity is still up 21% in 2019.
The analyst sentiment remains pretty evenly skewed. There are 29 brokerages in coverage on Square, and 15 rate it a tepid "hold," while the other 14 rate it a "buy" or better. Then there's the consensus 12-month price target of $83.97, which was a 3.7% premium to last night's closing perch at $80.98.