Squarespace Stock Fair Value – Insiders’ Unexpected Stock Sale of US$6.2m Raises Red Flags for Squarespace
December 30, 2023
🌥️Trending News
Squarespace ($NYSE:SQSP), a leading website building platform, has recently come under scrutiny following the unexpected sale of US$6.2 million worth of stock by company insiders. This mass sale of stock has caused speculation among investors as to what could have prompted the sudden move. Squarespace is a publicly traded company and its stocks are listed on the New York Stock Exchange (NYSE). The company offers a wide range of services, from hosting and design to marketing and analytics. The recent stock sale by insiders has raised several red flags for investors, suggesting a potential lack of confidence in the company.
Squarespace has yet to publicly comment on the matter, leaving investors to speculate as to the reasons behind the mass sale. Some have pointed to the recent downfall of the tech sector as reason for the insiders’ move, while others suggest that there may be underlying issues with the company that have yet to be revealed. Whatever the underlying cause of this unexpected stock sale may be, it is clear that investors are taking note. With Squarespace’s stock price already down from its all-time high last year, investors will be keeping a close eye on the company in the coming days and weeks to see how it responds to this recent development.
Market Price
On Tuesday, Squarespace‘s stock opened at $32.4 and closed at the same price, a slight increase of 0.6% from the previous closing price of 32.2. This minor change in the stock’s price, however, does not reflect the underlying news that has raised red flags for investors; namely, that insiders sold $6.2 million worth of the company’s shares on Monday. Although the insider sales are not necessarily a cause for alarm, it does raise questions among investors about the future of the company and its prospects in the market.
It is important to note that insider trading is legal and not necessarily indicative of any wrongdoing or negative sentiment about the company. In any case, investors should pay close attention to any developments in the coming days as they try to gauge Squarespace’s long-term prospects in light of this news. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Squarespace. More…
| Total Revenues | Net Income | Net Margin |
| 970.43 | -246.3 | -7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Squarespace. More…
| Operations | Investing | Financing |
| 209.13 | -164.5 | -29.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Squarespace. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 904.9 | 1.19k | -2.12 |
Key Ratios Snapshot
Some of the financial key ratios for Squarespace are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.4% | -39.9% | -13.8% |
| FCF Margin | ROE | ROA |
| 1.7% | 28.8% | -9.2% |
Analysis – Squarespace Stock Fair Value
At GoodWhale, we conducted an analysis of SQUARESPACE’s financials and determined that the fair value of a SQUARESPACE share is approximately $34.7. This value was calculated using our proprietary Valuation Line. Currently, SQUARESPACE stock is being traded at $32.4, meaning that it is slightly undervalued by 6.5%. We believe that this presents an opportunity for investors to capitalize on good value, given the company’s strong fundamentals. Squarespace“>More…
Peers
In the world of website design and hosting, there is stiff competition between Squarespace Inc and its competitors: Justsystems Corp, Marin Software Inc, and Autodesk Inc. All four companies offer different plans and features for their customers, making it difficult for consumers to decide which one to use.
However, Squarespace Inc has always managed to stay ahead of the game, thanks to its user-friendly interface and innovative design templates.
– Justsystems Corp ($TSE:4686)
Justsystems Corp is a Japanese software company that specializes in artificial intelligence and document processing. The company has a market cap of 211.94B as of 2022 and a Return on Equity of 14.99%. Justsystems was founded in 1981 and is headquartered in Tokyo, Japan.
– Marin Software Inc ($NASDAQ:MRIN)
Marin Software Inc is a publicly traded digital advertising company. The company has a market capitalization of 19.34 million as of 2022 and a return on equity of -36.28%. The company provides a software platform that helps businesses manage their online advertising campaigns across multiple channels, including search, display, social, and mobile. The company was founded in 2006 and is headquartered in San Francisco, California.
– Autodesk Inc ($NASDAQ:ADSK)
Autodesk, Inc. is an American multinational software corporation that makes software for the architecture, engineering, construction, manufacturing, media, and entertainment industries. A market cap is a company’s total value, including shares outstanding and debt. Autodesk’s market cap is $49.39B as of 2022. Return on equity (ROE) is a financial ratio that measures the profitability of a company in relation to its shareholders’ equity. Autodesk’s ROE is 71.49%.
Summary
Recent activity in the stock market suggests potential weakness in Squarespace. Insiders have sold off US$6.2 million worth of stock, which is an unusual amount for a company of its size. This activity implies that those in the know are wary of the company’s prospects and are cashing out before any further losses. As a result, investors should do their own research into Squarespace’s current performance and outlook before deciding whether it is a safe investment.
