Block (NYSE:XYZ) Earns "Buy" Rating from Needham & Company LLC

Key Points

• Needham reaffirmed its Buy rating on Block and set a $100 price target, implying about 32% upside from the prior close.
• Block reported quarterly earnings of $1.13 per share, beating the $0.68 consensus estimate; revenue rose 9.9% year over year to $6.72 billion.
• Analysts’ consensus rating is Moderate Buy, with an average target price of $96.81. Block also raised its full-year profit outlook, according to the article’s news roundup.

Block (NYSE:XYZ - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Needham & Company LLC in a report released on Wednesday, Benzinga reports. They presently have a $100.00 price objective on the technology company's stock. Needham & Company LLC's target price would suggest a potential upside of 31.98% from the stock's previous close.

Other equities analysts have also issued research reports about the stock. Barclays assumed coverage on shares of Block in a report on Tuesday, July 7th. They issued an "overweight" rating and a $100.00 price objective on the stock. Oppenheimer restated an "outperform" rating and set a $97.00 target price on shares of Block in a research note on Thursday, August 6th. Canaccord Genuity Group lifted their target price on Block from $85.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Robert W. Baird lifted their target price on Block from $105.00 to $106.00 and gave the stock an "outperform" rating in a research report on Friday, October 2nd. Finally, Benchmark upgraded Block to a "strong-buy" rating in a research note on Thursday, September 10th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, Block currently has a consensus rating of "Moderate Buy" and a consensus target price of $96.81.

Block Trading Down 1.7%

NYSE XYZ opened at $75.77 on Wednesday. The company's fifty day simple moving average is $77.79 and its 200-day simple moving average is $71.18. Block has a 52 week low of $48.21 and a 52 week high of $86.92. The company has a current ratio of 2.21, a quick ratio of 2.21 and a debt-to-equity ratio of 0.26. The stock has a market cap of $45.52 billion, a P/E ratio of 135.30, a PEG ratio of 0.81 and a beta of 2.58.

Block (NYSE:XYZ - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The technology company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.45. The business had revenue of $6.72 billion during the quarter. Block had a net margin of 1.43% and a return on equity of 8.10%. Block's revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.54 earnings per share. Equities research analysts predict that Block will post 2.75 EPS for the current fiscal year.

Insider Transactions at Block

In other Block news, Director Anthony Eisen sold 6,000 shares of the stock in a transaction on Wednesday, October 28th. The shares were sold at an average price of $74.44, for a total transaction of $446,640.00. Following the transaction, the director directly owned 1,212,672 shares in the company, valued at $90,271,303.68. This represents a 0.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 232,686 shares of company stock valued at $18,360,227 over the last 90 days. Corporate insiders own 11.37% of the company's stock.

Institutional Investors Weigh In On Block

Hedge funds and other institutional investors have recently modified their holdings of the stock. Elevation Wealth Partners LLC grew its stake in Block by 301.0% in the second quarter. Elevation Wealth Partners LLC now owns 389 shares of the technology company's stock worth $30,000 after purchasing an additional 292 shares in the last quarter. Global Assets Advisory LLC bought a new stake in Block in the first quarter valued at about $31,000. Meeder Asset Management Inc. acquired a new stake in Block during the second quarter valued at approximately $46,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Block during the third quarter valued at approximately $48,000. Finally, Ancora Advisors LLC acquired a new stake in Block during the second quarter valued at approximately $53,000. Institutional investors own 70.44% of the company's stock.

Block News Roundup

Here are the key news stories impacting Block this week:

• Positive Sentiment: Block beat earnings expectations, reporting $1.13 per share. Revenue was $6.72 billion, up 9.9% year over year, and net income rose to $565.6 million from $461.5 million. Block Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its full-year profit outlook after gross profit growth exceeded its guidance. Cash App drove quarterly growth, while Square’s U.S. payment volume growth accelerated, suggesting its sales efforts are gaining traction. Block raises full-year profit outlook as Cash App drives Q3 growth
• Neutral Sentiment: Block reached a preliminary settlement with the Department of Justice. A resolution could reduce regulatory uncertainty, but the available report does not specify the settlement’s terms or financial impact. Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement
• Negative Sentiment: A post-earnings analysis noted that losses climbed even as adjusted profit increased, highlighting potential cost pressures that could temper optimism about the outlook. Block’s Adjusted Profit Jumps as Losses Climb

Block Company Profile

Block, Inc is a financial technology company that provides payments, commerce, and financial services through an ecosystem of business and consumer products. Formerly known as Square, the company was co-founded by Jack Dorsey and Jim McKelvey and changed its corporate name to Block in 2021.

Its Square ecosystem serves businesses with point-of-sale hardware, payment processing, invoicing, payroll, inventory management, customer engagement, online commerce, and other software tools. Block also offers lending and other financial services to eligible business customers through Square-related products.

For consumers, Block operates Cash App, a mobile financial services platform that supports services such as peer-to-peer payments, money transfers, a Cash App Card, direct deposit, investing, and bitcoin transactions, subject to product and geographic availability.

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