Financial services and digital payments company Square, Inc. (SQ), announced that it has acquired frontline employee platform company Crew. The financial terms of the deal have been kept under wraps.
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Following the news, shares of the company declined on Wednesday and closed at $238.80.
With this buyout, Square will add a robust workplace messaging platform that will enhance its existing labor management tools.
General Manager of Square Point of Sale Saumil Mehta said, “As sellers grow their businesses and teams, we’re committed to helping them easily manage the daily operations of their workforce. That’s why we’re thrilled to add Crew’s powerful technology to our ecosystem and welcome an extremely experienced and knowledgeable team to the Square family.” (See Square stock chart on TipRanks)
On July 9, D.A. Davidson analyst Chris Brendler reiterated a Buy rating on the stock with a price target of $275. The analyst’s price target implies 15.1% upside potential from current levels.
According to Brendler, revenue from Square’s Seller app is likely to exceed expectations in the second quarter due to macro reopening tailwinds. Further, the analyst foresees the company generating robust travel and services revenue.
The stock has a Moderate Buy consensus rating based on 17 Buys, 5 Holds and 1 Sell. The average Square price target of $284.90 implies 19.2% upside potential from current levels.
Square scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 95.6% over the past year.
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