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 cost of $219.53.
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The stock sale is actually a component of planned sales by the billionaire co-founder. He soon started the weekly sales of 100,000 shares on Nov. 16. Since then, he has 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.
When you’re thinking about selling based on these planned sales, don’t. Square’s got lots of space to work in 2021.
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Square Stock Hits $300 Square stock is right now trading at at least $240. Since Jan. 1, the stock is up over 10 %.
And that’s along with the 245 % gains it realized in 2020, something I had a suspicion would happen. Here’s what I published on Jan. three, 2020:
Since Q3 2017, Square’s GPV [gross transaction volume] from sellers with an annual GPV of over $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of only $125,000 fallen 700 basis points to forty five %. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to twenty eight %. Precisely why is it critical? It demonstrates the company’s revenue has become far more diversified; it now gains from payment 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 yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That is up 270 basis points from the previous year. 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 2 groups accounted for 61 % of seller GPV in Q3 2020, 500 basis points higher than the previous 12 months.
Sure, sellers with yearly GPV less than $125,000 still accounted for 39 % of general seller GPV, but it shows bigger companies’ acceptance rate, which happens to be important to the constant growth 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.