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 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 through his latest divestiture on Jan. 4.
Estimating the whole sales, he likely generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.
When you are contemplating offering based on these planned sales, don’t. Square’s got lots of space to run in 2021.
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Square Stock Hits $300 Square stock is already trading at at least $240. Since Jan. 1, the stock is up more than ten %.
And that is on top of the 245 % gains it attained in 2020, something I’d a suspicion would occur. Here’s what I wrote on Jan. 3, 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 under $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 %. Why is it important? It demonstrates the company’s revenue is now far more diversified; it now benefits 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 annual 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 12 months. 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 within Q3 2020, 500 basis points higher than the earlier year.
Of course, sellers with annual GPV under $125,000 still accounted for 39 % of general seller GPV, however, it shows bigger companies’ acceptance rate, which happens to be important to the ongoing development of its.
To get to $300 sooner in 2021, two things have to hold growing: Cash App, its finance app, and then Square Capital, its lending platform.