Q2 STOCKS TO BUY

Square Stock Inches Higher, Despite Analyst Drubbing

Gains are limited by a round of price-target cuts

Digital Content Manager
Nov 7, 2019 at 9:54 AM
facebook X logo linkedin


Payments concern Square Inc (NYSE:SQ) is inching higher this morning, following its third-quarter earnings release. The firm posted earnings of 25 cents per share on revenue of $602.22 million, which both beat estimates. The firm benefited from strength from its Cash App, where revenue more than doubled. Analysts, however, aren't impressed.

Specifically, five in coverage have slashed their price targets, including J.P. Morgan Securities, which cut its estimate to $75 from $87, stating that Square's focus on investments in the next year could weight on near-term margin expansion. Analyst sentiment has been split on the equity. Prior to today, 17 in coverage said Square was a "buy" or better, while 18 said "hold" or worse. 

Sentiment among the options pits has been much more bullish. During the last 10 weeks, 2.61 calls have been bought for every put at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 90th percentile of its annual range, too, indicating a much healthier than usual appetite for calls over puts of late. 

The stock's Schaeffer's open interest ratio (SOIR) of 1.32 tells a different story. This number stands higher than 79% of all other readings from the past year, which points to unusual open interest for put options expiring within the next three months.

Taking a look at the charts, the shares of SQ have been moving sideways since suffering a massive post-earnings bear gap in early August. A late-September pullback was caught by the equity's $56 region. Lately, the shares have been bouncing along the $60 level -- testing their footing atop the 40-day moving average in recent weeks. At last check, SQ is up 0.5% at $61.65. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter