Swipe Again For Square’s IPO Quiet Period Expiration

Square, Incorporated (NYSE: SQ) – Buy Recommendation – $13.10 PT

Square is a San Francisco based company that develops and markets point-of-sale software and hardware primarily for smartphones and tablets. We previewed SQ’s IPO quiet period expiration on our IPO Insights platform (and its IPO here).

The 25-day quiet period on Square, Incorporated will come to an end on December 14, 2015, allowing the firm’s IPO underwriters to publish (likely positive) reports and recommendations on December 15.

Current research shows a significant potential for above-market returns in the five days prior to and two days after the conclusion of a company’s quiet period; thus, the event opens a new buying opportunity for a growing firm.

Business Overview: Developer and Maker of Point-of-sale Software for Use with Smartphones and Tablets

Square makes point-of-sale software and hardware that is primarily used by SMEs to accept payments through a smartphone or tablet. Its product portfolio includes programs that provide digital receipts, consumer feedback, analytics, sales reports and inventory management. Square markets its products as a comprehensive service to operate an entire business by turning mobile devices into registers. In addition, the company offers small business financing and marketing tools. Its revenue comes mainly from within the United States, although sales are growing in Canada and Japan.

The San Francisco startup was founded by Twitter CEO Jack Dorsey, and the shares climbed 45 percent on the first day of trading, which demonstrated that investors still seek out new tech equities at reasonable prices. The company reduced its IPO offering price to $9 per share, which put the market valuation significantly lower than expectations. The strategy cost the company $110 million less that it would have raised if it had been priced closer to the closing price on the first day at $13.07.

In the 12 months ended September 30, 2015, Square processed here in gross payment volume (GPV) through 638 million card payments made from approximately 180 million payment cards.