Financial services and digital payments company Square, Inc. (SQ) has launched Square Banking to help small businesses manage their cash flow and get more out of their hard-earned money.
Following the news release, shares of the company jumped 5.5% in Tuesday’s trading session and closed at $247.02 in the extended trading hours.
Square Banking’s offerings primarily include three products — Square Savings, Square Checking and Square Loans. The three products have been developed to alleviate the problems of managing cash flow for small business owners.
The Head of Product at Square Banking, Christina Riechers, said, “With Square Banking, we’ve reimagined the financial system for small business owners with their cash flow needs at the center. We’re introducing fair, accessible financial services that connect directly with our sellers’ payments, helping them unlock instant access to their sales, automate their savings, and receive personalized financing offerings.” (See Square stock chart on TipRanks)
On July 20, BTIG analyst Mark Palmer reiterated a Buy rating on the stock with a price target of $295 (19.7% upside potential from current levels).
According to Palmer, the company remains in a better position to offer decentralized finance products, which are based on blockchain technology.
The stock has a Moderate Buy consensus based on 16 Buys, 4 Holds and 1 Sell. The average Square price target of $284.11 implies 15.3% 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 94.1% over the past year.