On Jan. 4, 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 an element of planned sales by the billionaire co-founder. He began the weekly sales of 100,000 shares on Nov. 16. Since that time, he’s sold 700,000 shares through his latest divestiture on Jan. 4.
To estimate the whole sales, he likely generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.
If you are thinking about offering based on these planned sales, don’t. Square’s got plenty of room to work in 2021.
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Square Stock Hits $300 Square stock is already trading at more than $240. Since Jan. 1, the stock is up more than 10 %.
And that is on top of the 245 % gains it realized in 2020, something I had a suspicion would occur. Here’s what I wrote on Jan. 3, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of over $500,000 grew 700 basis points to twenty seven %. Meanwhile, those sellers with a yearly GPV of under $125,000 fallen 700 basis points to forty five %. At exactly the same time, sellers with between $125,000 as well as $500,000 in GPV increased by hundred basis points to twenty eight %. Exactly why is this important? It implies that the company’s revenue has become much more diversified; it now benefits from fee processing across companies of all the sizes.
How is it doing a year later on this front?
In the third quarter of 2020, sellers with annual 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 earlier year. Sellers with annual GPV between $125,000 as well as $500,000 were $8.7 billion in Q3 2020, or perhaps 10.1 % higher than in the third quarter a year earlier. These 2 groups accounted for sixty one % of seller GPV in Q3 2020, 500 basis points higher compared to the prior 12 months.
Of course, sellers with yearly GPV under $125,000 still accounted for thirty nine % of general seller GPV, though it shows larger companies’ acceptance rate, that is important to its constant growth.
To get to $300 sooner in 2021, two things have to hold growing: Cash App, the finance app of its, and Square Capital, its lending platform.