Raymond James Financial Forecasts Strong Price Appreciation for Block (NYSE:XYZ) Stock

Key Points

• Raymond James raised its price target on Block to $100 from $97 and reiterated its Outperform rating, implying about 16% upside from the stock’s then-current price.
• Analyst sentiment is broadly positive: Block has a Moderate Buy consensus and an average price target of $101.92, though some firms maintain more cautious ratings.
• Block reported quarterly EPS of $1.13, beating the $0.68 consensus, while revenue grew 9.9% year over year to $6.72 billion.

Block (NYSE:XYZ - Get Free Report) had its price objective hoisted by stock analysts at Raymond James Financial from $97.00 to $100.00 in a note issued to investors on Wednesday. The brokerage presently has an "outperform" rating on the technology company's stock. Raymond James Financial's price target would indicate a potential upside of 16.05% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. Clear Str upgraded Block to a "hold" rating in a research report on Thursday, July 16th. Morgan Stanley upped their price target on Block from $80.00 to $82.00 and gave the company an "equal weight" rating in a research note on Wednesday. UBS Group set a $96.00 price target on Block and gave the company a "buy" rating in a report on Thursday, October 15th. Argus lifted their price objective on Block from $103.00 to $105.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Scotiabank lifted their price objective on Block from $82.00 to $89.00 and gave the stock a "sector perform" rating in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Block currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.92.

Block Trading Up 2.5%

XYZ stock traded up $2.13 during trading on Wednesday, hitting $86.17. The company had a trading volume of 2,838,564 shares, compared to its average volume of 6,191,620. The company has a quick ratio of 2.21, a current ratio of 2.23 and a debt-to-equity ratio of 0.25. The firm has a 50-day moving average price of $77.90 and a 200-day moving average price of $71.39. Block has a 12 month low of $48.21 and a 12 month high of $88.51. The stock has a market cap of $51.77 billion, a price-to-earnings ratio of 116.24, a PEG ratio of 0.92 and a beta of 2.58.

Block (NYSE:XYZ - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The technology company reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.45. The firm had revenue of $6.72 billion for the quarter. Block had a return on equity of 9.63% and a net margin of 1.80%. The firm's quarterly revenue was up 9.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.54 EPS. As a group, analysts predict that Block will post 2.75 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Brian Grassadonia sold 8,173 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $82.42, for a total transaction of $673,618.66. Following the completion of the transaction, the insider directly owned 513,981 shares in the company, valued at approximately $42,362,314.02. The trade was a 1.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Amrita Ahuja sold 9,511 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $82.43, for a total value of $783,991.73. Following the transaction, the chief financial officer owned 423,262 shares of the company's stock, valued at $34,889,486.66. The trade was a 2.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 226,686 shares of company stock worth $17,861,807. Insiders own 11.37% of the company's stock.

Institutional Investors Weigh In On Block

Large investors have recently bought and sold shares of the company. Fifth Third Bancorp boosted its position in shares of Block by 0.8% during the third quarter. Fifth Third Bancorp now owns 68,798 shares of the technology company's stock worth $5,059,000 after purchasing an additional 540 shares in the last quarter. Maryland State Retirement & Pension System increased its position in shares of Block by 11.2% in the 3rd quarter. Maryland State Retirement & Pension System now owns 31,914 shares of the technology company's stock valued at $2,347,000 after buying an additional 3,226 shares in the last quarter. Jacobi Capital Management LLC acquired a new stake in Block during the 3rd quarter worth $126,000. First Command Advisory Services Inc. raised its stake in Block by 209.9% during the 3rd quarter. First Command Advisory Services Inc. now owns 2,950 shares of the technology company's stock worth $217,000 after buying an additional 1,998 shares during the period. Finally, Knights of Columbus Asset Advisors LLC acquired a new stake in Block during the 3rd quarter worth $3,017,000. Institutional investors own 70.44% of the company's stock.

Block News Summary

Here are the key news stories impacting Block this week:

• Positive Sentiment: Block’s third-quarter results beat expectations: earnings per share were $1.13 versus the $0.68 consensus, while revenue rose 9.9% year over year. Cash App lending and Square growth helped lift gross profit 22% to $3.24 billion, and the company raised its 2026 outlook. Shares recently reached a 52-week high following the results. Article: Block earnings lift outlook Article: Block Q3 earnings beat estimates
• Positive Sentiment: Several firms raised price targets, reinforcing optimism: Wells Fargo lifted its target to $110, TD Cowen to $109, Barclays and Argus to $105, and RBC to $103. Needham reiterated its Buy rating, while TD Cowen and Susquehanna also expressed expectations for further gains. Wells Fargo forecast Argus target increase Barclays target increase
• Positive Sentiment: Traders also purchased a large volume of Block call options, suggesting bullish positioning, though options activity can be speculative. Call options activity
• Neutral Sentiment: Morgan Stanley raised its target to $82 but maintained an Equal Weight rating; Scotiabank also kept a Sector Perform rating. Their views are more cautious than the broader cluster of Buy and Outperform calls.
• Negative Sentiment: Block is making its second round of job cuts this year, affecting employees in Cash App. The cuts may reduce costs, but the timing shortly after strong earnings could raise questions about staffing and business needs. Article: Block job cuts

About Block

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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