On Jan. four, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square stock at an average cost of $219.53.
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The stock sale is part of planned sales by the billionaire co founder. He soon began the weekly sales of 100,000 shares on Nov. 16. Since then, he has sold 700,000 shares by using his latest divestiture on Jan. 4.
Estimating the total sales, he probably generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.
If you are considering selling based on these planned sales, do not. Square’s got ample space to work in 2021.
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Square Stock Hits $300 Square stock is already trading at at least $240. Since Jan. one, the stock is up over ten %.
And that is on top of the 245 % gains it attained in 2020, something I’d a suspicion would happen. Here’s what I wrote on Jan. three, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of more than $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of only $125,000 fallen 700 basis points to 45 %. At exactly the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to 28 %. Precisely why is it critical? It demonstrates the company’s revenue has become a lot more diversified; it now gains from payment processing across organizations of all sizes.
How’s it doing a year later on this front?
In the third quarter of 2020, sellers with yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the prior 12 months. Sellers with yearly GPV between $125,000 and $500,000 were $8.7 billion in Q3 2020, or 10.1 % higher than in the third quarter a year earlier. These two groups accounted for sixty one % of seller GPV within Q3 2020, 500 basis points higher compared to the prior year.
Of course, sellers with yearly GPV less than $125,000 still accounted for thirty nine % of overall seller GPV, though it shows larger companies’ acceptance rate, which happens to be important to the constant development of its.
To get to $300 sooner in 2021, 2 things have to keep growing: Cash App, the finance app of its, and therefore Square Capital, its lending platform.