Squarespace Inc (NYSE: SQSP) has seen a rise in its stock price by 0.73 in relation to its previous close of 44.08. However, the company has experienced a 0.61% gain in its stock price over the last five trading sessions. prnewswire.com reported 2024-08-14 that Calls $44.00 per Share Merger Consideration Offered by Permira Inadequate Considers Industry Standard Methodologies of Transaction Valuation Analysis to Have Been Omitted from Fairness Opinion, Resulting in Significant Undervaluation Believes Flawed, Self-Serving Process Was Designed to Benefit Controlling Shareholders and Permira, to the Detriment of Minority Shareholders Highlights That the Two “Selected Comps” Singled Out by Special Committee’s Financial Advisor Have Appreciated More than Premium Offered by Permira Intends to Vote AGAINST the Acquisition at the Upcoming Squarespace Special Meeting NEW YORK, Aug. 14, 2024 /PRNewswire/ — Glazer Capital, LLC, a manager of investment funds and separate accounts that collectively beneficially own 2,500,000 shares of Squarespace, Inc. (NYSE: SQSP) common stock, or approximately 5.4% of the shares owned by minority shareholders, today issued an open letter to the Squarespace Board detailing its opposition to the proposed acquisition of Squarespace by Permira Advisers and disclosing its intent to vote against the transaction at the upcoming special meeting of Squarespace shareholders. The full text of the letter follows below: August 14, 2024 Squarespace, Inc.225 Varick Street 12th Floor New York, New York 10014Attention: Board of Directors Dear Members of the Board of Directors of Squarespace (the “Board”): On May 13, 2024, Squarespace, Inc. (“Squarespace” or the “Company”) announced that it had entered into a definitive agreement to be acquired by affiliates of Permira Advisers LLC (“Permira”).
Is It Worth Investing in Squarespace Inc (NYSE: SQSP) Right Now?
The 36-month beta value for SQSP is also noteworthy at 0.62. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
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The public float for SQSP is 61.59M, and at present, short sellers hold a 2.67% of that float. The average trading volume of SQSP on August 15, 2024 was 1.09M shares.
SQSP’s Market Performance
SQSP stock saw an increase of 0.61% in the past week, with a monthly gain of 1.35% and a quarterly increase of 2.80%. The volatility ratio for the week is 0.45%, and the volatility levels for the last 30 days are 0.47% for Squarespace Inc (SQSP). The simple moving average for the last 20 days is 0.81% for SQSP stock, with a simple moving average of 23.72% for the last 200 days.
Analysts’ Opinion of SQSP
Many brokerage firms have already submitted their reports for SQSP stocks, with Mizuho repeating the rating for SQSP by listing it as a “Neutral.” The predicted price for SQSP in the upcoming period, according to Mizuho is $44 based on the research report published on August 05, 2024 of the current year 2024.
B. Riley Securities, on the other hand, stated in their research note that they expect to see SQSP reach a price target of $43. The rating they have provided for SQSP stocks is “Neutral” according to the report published on June 11th, 2024.
Mizuho gave a rating of “Buy” to SQSP, setting the target price at $50 in the report published on May 10th of the current year.
SQSP Trading at 1.28% from the 50-Day Moving Average
After a stumble in the market that brought SQSP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -0.36% of loss for the given period.
Volatility was left at 0.47%, however, over the last 30 days, the volatility rate increased by 0.45%, as shares surge +1.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +1.49% upper at present.
During the last 5 trading sessions, SQSP rose by +0.61%, which changed the moving average for the period of 200-days by +57.45% in comparison to the 20-day moving average, which settled at $44.07. In addition, Squarespace Inc saw 34.50% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SQSP starting from JONATHAN DAVID KLEIN, who proposed sale 164,964 shares at the price of $44.31 back on Aug 14 ’24. After this action, JONATHAN DAVID KLEIN now owns shares of Squarespace Inc, valued at $7,309,984 using the latest closing price.
JONATHAN DAVID KLEIN, the Director of Squarespace Inc, proposed sale 35,036 shares at $44.11 during a trade that took place back on Aug 13 ’24, which means that JONATHAN DAVID KLEIN is holding shares at $1,545,396 based on the most recent closing price.
Stock Fundamentals for SQSP
Current profitability levels for the company are sitting at:
- 0.04 for the present operating margin
- 0.74 for the gross margin
The net margin for Squarespace Inc stands at -0.0. The total capital return value is set at 0.12.
Based on Squarespace Inc (SQSP), the company’s capital structure generated 1.77 points at debt to capital in total, while cash flow to debt ratio is standing at 0.47. The debt to equity ratio resting at -2.29. The interest coverage ratio of the stock is 2.35.
Currently, EBITDA for the company is 127.66 million with net debt to EBITDA at 2.97. When we switch over and look at the enterprise to sales, we see a ratio of 5.88. The receivables turnover for the company is 26.72for trailing twelve months and the total asset turnover is 1.1. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.76.
Conclusion
In summary, Squarespace Inc (SQSP) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
