Block, Inc. (NYSE:XYZ) Stock Has Consensus Price Target of $95.61

Key Points

• Analyst sentiment is moderately bullish: 41 analysts give Block a consensus “Moderate Buy” rating, with an average 12-month price target of $95.61.
• Quarterly results beat expectations: Block reported EPS of $1.13 versus estimates of $0.68, revenue rose 9.9% year over year, and the company raised its full-year profit outlook as Cash App and Square activity supported growth.
• Block reached a preliminary settlement with the Department of Justice, potentially reducing legal uncertainty; however, a report also flagged rising losses despite stronger adjusted profit.

Shares of Block, Inc. (NYSE:XYZ - Get Free Report) have earned an average rating of "Moderate Buy" from the forty-one ratings firms that are currently covering the stock, Marketbeat Ratings reports. Ten research analysts have rated the stock with a hold rating, twenty-eight have given a buy rating and three have issued a strong buy rating on the company. The average 12-month target price among brokers that have covered the stock in the last year is $95.61.

A number of research analysts recently commented on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $95.00 target price on shares of Block in a research report on Wednesday, October 21st. BTIG Research reissued a "buy" rating and issued a $100.00 price target on shares of Block in a research report on Wednesday, October 28th. Scotiabank assumed coverage on shares of Block in a research note on Wednesday, September 2nd. They issued a "sector perform" rating and a $82.00 price objective for the company. TD Cowen raised their price objective on Block from $101.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Finally, Oppenheimer reiterated an "outperform" rating and set a $97.00 target price on shares of Block in a research report on Thursday, August 6th.

Block Trading Down 1.7%

XYZ opened at $75.77 on Wednesday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.21 and a current ratio of 2.21. Block has a one year low of $48.21 and a one year high of $86.92. The company 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. The business's 50-day simple moving average is $77.79 and its 200-day simple moving average is $71.18.

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

Key Headlines Impacting Block

Here are the key news stories impacting Block this week:

• Positive Sentiment: Block earned $1.13 per share, ahead of estimates, while net income increased to $565.6 million from $461.5 million a year earlier. 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 contributed to quarterly growth, and faster U.S. payment-volume growth at Square suggests 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 settlement could reduce legal uncertainty, but the available report does not detail its terms. Block lifts profit outlook and reaches preliminary DOJ settlement
• Negative Sentiment: One earnings reaction noted that losses climbed even as adjusted profit improved, a possible concern for investors weighing the stronger outlook against the quality and sustainability of earnings. Block's adjusted profit jumps as losses climb

Insider Buying and Selling

In other news, insider Brian Grassadonia sold 8,173 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $82.42, for a total transaction of $673,618.66. Following the transaction, the insider directly owned 513,981 shares in the company, valued at approximately $42,362,314.02. This trade represents a 1.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anthony Eisen sold 6,000 shares of Block stock in a transaction on Monday, August 24th. The shares were sold at an average price of $81.48, for a total transaction of $488,880.00. Following the completion of the transaction, the director directly owned 1,482,672 shares in the company, valued at $120,808,114.56. The trade was a 0.40% 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. Insiders have sold 232,686 shares of company stock worth $18,360,227 in the last quarter. 11.37% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Block during the second quarter valued at approximately $621,703,000. Arrowstreet Capital Limited Partnership raised its position in shares of Block by 528.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,309,296 shares of the technology company's stock worth $199,153,000 after purchasing an additional 2,782,523 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Block by 18.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,194,419 shares of the technology company's stock worth $234,886,000 after purchasing an additional 494,083 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Block by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,147,988 shares of the technology company's stock worth $189,353,000 after purchasing an additional 39,112 shares during the last quarter. Finally, Hyperion Asset Management Ltd boosted its position in Block by 6.9% during the 2nd quarter. Hyperion Asset Management Ltd now owns 2,682,854 shares of the technology company's stock valued at $203,897,000 after purchasing an additional 172,848 shares during the period. 70.44% of the stock is owned by hedge funds and other institutional investors.

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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