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 part of planned sales by the billionaire co-founder. He soon began the weekly sales of 100,000 shares on Nov. sixteen. Since then, he has sold 700,000 shares by using the latest divestiture of his on Jan. 4.
Estimating the total sales, he likely generated $160 million in pre tax proceeds. Heck, even billionaires have bills to pay.
When you’re thinking about offering based on these planned sales, don’t. Square’s got plenty of room to manage in 2021.
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Square Stock Hits $300 Square stock is today trading at over $240. Since Jan. 1, the stock is up over 10 %.
And that is in addition to the 245 % gains it achieved in 2020, something I had a suspicion would happen. Here is what I published on Jan. three, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of more than $500,000 grew 700 basis points to twenty seven %. Meanwhile, those sellers with a yearly GPV of only $125,000 dropped 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 28 %. Precisely why is this critical? It shows that the company’s revenue has become far more diversified; it now benefits from fee processing across organizations of all 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 earlier 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 preceding 12 months.
Of course, sellers with annual GPV under $125,000 still accounted for thirty nine % of general seller GPV, although it shows larger companies’ acceptance rate, that is crucial to the ongoing growth of its.
To get to $300 sooner in 2021, two things have to keep growing: Cash App, the finance app of its, and therefore Square Capital, its lending platform.