Square Stock Earns Bull Note on the Heels of CEO Exit

The equity looks ripe for a short squeeze

Digital Content Manager
Nov 30, 2021 at 10:51 AM
facebook twitter linkedin


The shares of Square Inc (NYSE:SQ) are down 1.3% to trade at $210.16 at last check, despite the digital payments name receiving an upgrade from BofA Global Research to "neutral" from "underperform," and a price-target hike to $221 from $210. Today's bull note comes after Jack Dorsey left his post as CEO of both Twitter (TWTR) and Square, as some seem to believe his departure may bring tailwinds to crypto-related stocks.

Square stock has had an extremely volatile year thus far, staging a dramatic pullback from its Aug. 5, all-time high of $289.23. The equity seems to be bouncing off the $205 level more recently, though overhead pressure remains at the $220 mark. Over the last month, SQ has shed 15.4%.

The brokerage bunch was already firmly bullish towards the security coming into today. Of the 29 in question, 20 carry a "buy" or better rating, while the other nine say "hold" or worse. What's more, the 12-month consensus target price of $295.08 is a notable 37.7% premium to current levels.

Short sellers have already started to hit the exits in droves, though SQ still looks ripe for a short squeeze. Short interest is off 32.5% in the most recent reporting period, yet the 27.31 million shares sold short make up 7% of the stock's available float, or nearly one week's worth of pent-up buying power.

A shift in the options pits could keep pushing Square stock forward. This is per SQ's 50-day put/call volume ratio of at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 89% of annual readings, indicating long puts have been getting picked up at a faster-than-usual clip.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners