Block (NYSE:XYZ) Stock Keeps Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “outperform” rating on Block and maintained a $95 price target, implying approximately 20.4% upside from the stock’s reported $78.91 price.
• Block reported quarterly EPS of $1.02, beating the $0.48 analyst consensus, while revenue rose 9.3% year over year to $6.62 billion. Analysts collectively maintain a “Moderate Buy” rating with an average price target of $95.55.
• Insiders sold 308,565 shares worth about $24.9 million over the past 90 days, while institutional investors and hedge funds own 70.44% of Block’s outstanding shares.

Block (NYSE:XYZ - Get Free Report)'s stock had its "outperform" rating reiterated by research analysts at Royal Bank Of Canada in a note issued to investors on Wednesday, Benzinga reports. They currently have a $95.00 target price on the technology company's stock. Royal Bank Of Canada's price target suggests a potential upside of 20.39% from the company's current price.

Other equities analysts have also recently issued reports about the company. Needham & Company LLC boosted their price target on Block from $95.00 to $100.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. William Blair cut Block to a "market perform" rating in a report on Tuesday, June 30th. Citigroup boosted their price target on Block from $100.00 to $115.00 and gave the stock a "buy" rating in a report on Thursday, July 16th. Keefe, Bruyette & Woods boosted their price target on Block from $90.00 to $100.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Finally, Scotiabank initiated coverage on Block in a report on Wednesday, September 2nd. They issued a "sector perform" rating and a $82.00 price target for the company. Four analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $95.55.

Block Price Performance

XYZ traded up $0.81 during trading on Wednesday, reaching $78.91. 746,420 shares of the stock were exchanged, compared to its average volume of 6,149,881. The business's 50 day moving average price is $78.72 and its two-hundred day moving average price is $75.26. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.21 and a quick ratio of 2.21. The company has a market capitalization of $47.41 billion, a price-to-earnings ratio of 140.98, a P/E/G ratio of 0.81 and a beta of 2.55. Block has a 1 year low of $48.21 and a 1 year high of $86.92.

Block (NYSE:XYZ - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $1.02 earnings per share for the quarter, topping analysts' consensus estimates of $0.48 by $0.54. Block had a return on equity of 8.10% and a net margin of 1.43%. The company had revenue of $6.62 billion during the quarter. During the same period last year, the firm earned $0.62 earnings per share. The business's revenue was up 9.3% compared to the same quarter last year. Block has set its FY 2026 guidance at 4.020-4.020 EPS and its Q3 2026 guidance at 1.020-1.020 EPS. As a group, equities research analysts anticipate that Block will post 2.74 earnings per share for the current year.

Insider Activity at Block

In related news, Director Anthony Eisen sold 41,000 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $85.85, for a total value of $3,519,850.00. Following the completion of the transaction, the director directly owned 1,566,672 shares in the company, valued at approximately $134,498,791.20. This represents a 2.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Amrita Ahuja sold 9,511 shares of the company's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $82.43, for a total value of $783,991.73. Following the completion of 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 308,565 shares of company stock worth $24,872,046. 11.37% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Block

Institutional investors have recently added to or reduced their stakes in the business. Raiffeisen Bank International AG boosted its holdings in Block by 0.3% in the second quarter. Raiffeisen Bank International AG now owns 44,901 shares of the technology company's stock valued at $3,503,000 after purchasing an additional 148 shares during the last quarter. Avior Wealth Management LLC boosted its holdings in Block by 3.3% in the second quarter. Avior Wealth Management LLC now owns 6,081 shares of the technology company's stock valued at $462,000 after purchasing an additional 193 shares during the last quarter. Carson Advisory Inc. boosted its holdings in Block by 2.6% in the first quarter. Carson Advisory Inc. now owns 8,035 shares of the technology company's stock valued at $484,000 after purchasing an additional 200 shares during the last quarter. World Investment Advisors boosted its holdings in Block by 8.1% in the first quarter. World Investment Advisors now owns 3,825 shares of the technology company's stock valued at $230,000 after purchasing an additional 287 shares during the last quarter. Finally, Elevation Wealth Partners LLC boosted its holdings in Block by 301.0% in the second quarter. Elevation Wealth Partners LLC now owns 389 shares of the technology company's stock valued at $30,000 after purchasing an additional 292 shares during the last quarter. 70.44% of the stock is currently owned by institutional investors and hedge funds.

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.