TD Cowen Issues Positive Forecast for Block (NYSE:XYZ) Stock Price

Key Points

• TD Cowen raised Block’s price target from $105 to $109 and reiterated a buy rating, implying 23.82% upside from the stock’s current price.
• Block reported quarterly EPS of $1.13, beating the $0.68 consensus, while revenue rose 9.9% year over year to $6.72 billion; the company also raised its full-year profit outlook.
• Block set aside about $764 million for a preliminary Justice Department settlement tied to money-laundering controls, putting regulatory and compliance costs in focus.

Block (NYSE:XYZ - Get Free Report) had its target price lifted by equities researchers at TD Cowen from $105.00 to $109.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the technology company's stock. TD Cowen's price objective suggests a potential upside of 23.82% from the stock's current price.

Other research analysts have also issued research reports about the company. Weiss Ratings upgraded Block from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 6th. Bank of America upped their target price on shares of Block from $115.00 to $117.00 and gave the stock a "buy" rating in a report on Wednesday. Argus increased their target price on shares of Block from $86.00 to $103.00 and gave the company a "buy" rating in a research report on Friday, August 7th. KeyCorp raised their price target on shares of Block from $105.00 to $108.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Finally, Truist Financial lowered their price target on shares of Block from $93.00 to $89.00 and set a "buy" rating on the stock in a research report on Friday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $97.58.

Block Price Performance

XYZ traded up $12.03 during midday trading on Wednesday, hitting $88.03. 12,744,157 shares of the company traded hands, compared to its average volume of 6,153,957. 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 company has a market capitalization of $52.89 billion, a price-to-earnings ratio of 157.10, a PEG ratio of 0.81 and a beta of 2.58. Block has a 52-week low of $48.21 and a 52-week high of $88.42. The business has a 50 day simple moving average of $77.79 and a two-hundred day simple moving average of $71.18.

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

Insider Activity

In other news, Director Anthony Eisen sold 6,000 shares of Block stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $74.44, for a total transaction of $446,640.00. Following the transaction, the director owned 1,212,672 shares in the company, valued at $90,271,303.68. The trade was a 0.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 232,686 shares of company stock valued at $18,360,227. 11.37% of the stock is owned by company insiders.

Institutional Investors Weigh In On Block

A number of hedge funds have recently modified their holdings of XYZ. BlackRock Inc. acquired a new stake in Block during the 2nd quarter worth $621,703,000. Arrowstreet Capital Limited Partnership boosted its stake in Block by 528.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,309,296 shares of the technology company's stock valued at $199,153,000 after acquiring an additional 2,782,523 shares in the last quarter. Assenagon Asset Management S.A. grew its holdings in shares of Block by 372.8% during the second quarter. Assenagon Asset Management S.A. now owns 937,540 shares of the technology company's stock worth $71,253,000 after purchasing an additional 739,264 shares during the last quarter. Bank of America Corp DE purchased a new position in shares of Block during the second quarter worth about $23,531,000. Finally, Engineers Gate Manager LP increased its position in shares of Block by 2,575.4% during the second quarter. Engineers Gate Manager LP now owns 571,414 shares of the technology company's stock worth $43,427,000 after purchasing an additional 550,056 shares in the last quarter. Hedge funds and other institutional investors own 70.44% of the company's stock.

Key Block News

Here are the key news stories impacting Block this week:

• Positive Sentiment: Block reported third-quarter adjusted earnings of $1.13 per share, ahead of estimates, while revenue rose 9.9% year over year to $6.72 billion. Growth in Cash App lending and Square payment volumes, along with stronger-than-expected profitability, helped drive the results. Article: Block stock jumps as earnings beat estimates and full-year outlook rises
• Positive Sentiment: The company raised its full-year profit outlook and highlighted potential for further growth in 2027, supported by Square momentum, Cash App lending and AI investment. A higher outlook can reinforce expectations for continued earnings growth. Article: Block raises full-year profit outlook as Cash App drives Q3 growth
• Positive Sentiment: Several firms raised their price targets, including Susquehanna to $110, Bank of America to $117 and RBC to $103; Needham also reiterated its buy rating. These updates signal continued analyst support following the results. Article: Susquehanna raises Block price target
• Neutral Sentiment: Morgan Stanley raised its target to $82 but maintained an equal-weight rating, leaving its estimate below the recent share price. This underscores that analysts differ on how much further the stock can rise. Article: Morgan Stanley raises Block price target
• Negative Sentiment: Block has set aside about $764 million in connection with a preliminary Justice Department settlement over money-laundering controls. The substantial expected cost and reported compliance concerns could weigh on earnings and keep regulatory risk in focus; the final settlement amount may depend on further compliance testing. Article: Block lifts profit outlook, reaches preliminary DOJ settlement

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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