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 price of $219.53.
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The stock sale is actually a component of planned sales by the billionaire co founder. He began the weekly sales of 100,000 shares on Nov. sixteen. Since then, he’s sold 700,000 shares by using his latest divestiture on Jan. 4.
Estimating the total sales, he likely generated $160 million in pre tax proceeds. Heck, even billionaires have bills to pay.
If you’re thinking about selling based on these planned sales, do not. Square’s got plenty of room to work in 2021.
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Square Stock Hits $300 Square stock is already trading at over $240. Since Jan. one, the stock is up more than 10 %.
And that’s along with the 245 % gains it attained in 2020, something I’d a suspicion would occur. Here is what I wrote on Jan. three, 2020:
Since Q3 2017, Square’s GPV [gross transaction volume] from sellers with an annual GPV of around $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to forty five %. At the same time, sellers with between $125,000 as well as $500,000 in GPV increased by 100 basis points to 28 %. Why is this critical? It shows that the company’s revenue has become far more diversified; it now benefits from payment processing across businesses of all the 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 previous year. Sellers with annual GPV between $125,000 as well as $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 61 % of seller GPV within Q3 2020, 500 basis points higher than the preceding 12 months.
Sure, sellers with annual GPV less than $125,000 still accounted for 39 % of overall seller GPV, however, it shows larger companies’ acceptance fee, which is critical to its ongoing growth.
To get to $300 sooner in 2021, 2 things have to hold growing: Cash App, the finance app of its, and Square Capital, its lending platform.