Finance

What Recent Ownership Trends Suggest About Square, Inc. (SQ)’s Future Performance

Recent insider trends for Square, Inc. (NYSE:SQ) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SQ’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 78.50% of Square, Inc. (SQ)’s shares. The total value of these holdings, in millions, is $7,936. Among active positions in the latest quarter, 184 holders increased their positions by a total of 34.8 million shares, 119 holders decreased the positions by a total of 30.35 million shares, and 57 holders held their positions. This works out to a net increase in ownership of 4.45 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 68 holders initiated new positions by a total of 5.54 million shares and 31 holders exited their positions by a total of 4.35 million shares. This nets out to an increase of 1.19 million shares and is a bullish sign for SQ.

In the last three months, insiders executed a total of 45 trades. 17 of these were buys and 28 were sells. Insider ownership decreased by a total of 195853 shares, which suggests that SQ’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 96 buys and 99 sells, and ownership increased by a net of 4.16 million shares.



Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Square, Inc. (NYSE:SQ)’s short interest is 34.43 million shares, or % of the float. This represents an increase of 3% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SQ is a hold, which implies that SQ is expected to perform in line with the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Square, Inc. (NYSE:SQ) is fairly valued.

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