Cowen and Company downgraded SQ to "market perform"
The shares of Square Inc (NYSE:SQ) are down 1.3% at $131.57 at last check, after a downgrade from Cowen and Company to "market perform" from "outperform." The firm also upped its price target to $119 from $79, while Evercore ISI chimed in with a price-target hike all the way to $131 from $48.
Today's so-far modest drop has SQ waning off of yesterday's record high of $133.43, yet still eyeing its fourth-straight weekly win. Year-to-date, the equity is up 110.4%.
Coming into today, 14 out of 36 analysts in coverage were at a "buy" or better rating, with 18 at a lukewarm "hold," and four carrying a "sell" or worse. Meanwhile, the 12-month consensus price target of $91.74 is a 29.5% discount to current levels, indicating the bull notes today could be just the beginning, as analysts play catch up.
Despite calls outnumbering puts on an absolute basis, the stock's 10-day put/call volume ratio of 0.61 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 72% of readings from the past year, suggesting puts are being picked up at a faster-than-usual rate.
Also worth noting is SQ's Schaeffer's Volatility Scorecard (SVS), which sits at a high 98 out of 100, meaning the stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.