Square Inc. Increases Rate of Same Day Transfers

Square Inc. announced this week that it will change the rate of its same-day transfers for sellers to 1.5% per transfer.
Shares of the stock fell in Tuesday’s extended session a little less than 1% on the news.

The company has said that it is charging the new fee because the company has launched “a variety of fast and free transfer options.”

The change went effect Tuesday for all sellers new to instant transfers and Feb. 7 for existing instant transfer customers.

It was also this week that BofA Merrill Lynch upgraded Square to a buy rating from the equivalent of a hold and increased its price target to $75 from $70.

“Following significant underperformance in 2019, we see an attractive entry point in SQ,” said Bank of America research analyst Jason Kupferberg in a note to clients Tuesday.

According to Kupferberg, Square’s revenue guidance for 2020 appears “conservative,” setting up investors for a potential upside surprise.

Disclaimer: We have no position in Square Inc. (NYSE: SQ) and have not been compensated for this article.