Block (NYSE:XYZ – Get Free Report) issued its earnings results on Tuesday. The technology company reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.45, FiscalAI reports. 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 quarterly revenue was up 9.9% on a year-over-year basis. During the same quarter last year, the company earned $0.54 earnings per share.
Block Trading Down 1.7%
XYZ traded down $1.31 during trading hours on Tuesday, reaching $75.77. The company’s stock had a trading volume of 9,656,356 shares, compared to its average volume of 6,126,514. The stock has a market cap of $45.52 billion, a PE ratio of 135.30, a P/E/G ratio of 0.79 and a beta of 2.55. Block has a fifty-two week low of $48.21 and a fifty-two week high of $86.92. 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 business’s 50-day moving average is $77.79 and its 200-day moving average is $71.18.
Wall Street Analyst Weigh In
Several equities research analysts recently commented on XYZ shares. Robert W. Baird increased their price target on Block from $105.00 to $106.00 and gave the company an “outperform” rating in a report on Friday, October 2nd. UBS Group set a $96.00 price objective on Block in a research note on Thursday, October 15th. BMO Capital Markets restated a “hold” rating on shares of Block in a report on Tuesday. Susquehanna raised their target price on Block from $90.00 to $100.00 and gave the stock a “positive” rating in a research note on Thursday, August 6th. Finally, Truist Financial reduced their price target on Block from $93.00 to $89.00 and set a “buy” rating on the stock in a report on Friday, October 23rd. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $95.61.
Get Our Latest Analysis on Block
Insider Transactions at Block
In other news, Director Anthony Eisen sold 6,000 shares of the company’s stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $74.44, for a total value of $446,640.00. Following the transaction, the director owned 1,212,672 shares of the company’s stock, valued at $90,271,303.68. This represents a 0.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 282,657 shares of company stock worth $22,650,237 over the last ninety days. 11.37% of the stock is owned by company insiders.
Institutional Trading of Block
Institutional investors and hedge funds have recently bought and sold shares of the stock. Elevation Wealth Partners LLC increased its position in shares of Block by 301.0% during the second quarter. Elevation Wealth Partners LLC now owns 389 shares of the technology company’s stock valued at $30,000 after acquiring an additional 292 shares during the last quarter. Global Assets Advisory LLC acquired a new position in shares of Block in the 1st quarter worth approximately $31,000. Meeder Asset Management Inc. acquired a new position in shares of Block in the 2nd quarter worth approximately $46,000. Ancora Advisors LLC acquired a new position in shares of Block in the 2nd quarter worth approximately $53,000. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its position in shares of Block by 1,033.3% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 918 shares of the technology company’s stock worth $55,000 after purchasing an additional 837 shares during the period. 70.44% of the stock is currently owned by hedge funds and other institutional investors.
More Block News
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
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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