Investment firm Keefe, Bruyette & Woods has adjusted its price target for Block (NYSE:XYZ) from $90.00 to $85.00, as noted in their report released on October 23, 2023. The firm maintains an “outperform” rating on the technology company’s stock, suggesting a potential upside of 31.46% based on its current trading price.
Analyst Ratings and Market Response
Block has attracted attention from various analysts recently. Weiss Ratings reiterated a “hold (c)” rating on Block on the same day as Keefe’s report. Meanwhile, Citigroup upgraded Block to a “strong-buy” rating, while Wells Fargo & Company issued a similar upgrade just a day earlier. Needham & Company LLC also restated a “buy” rating with a target price of $80.00 on November 24, 2023. Additionally, BTIG Research reaffirmed a “buy” rating, setting a target of $90.00.
Overall, the consensus among analysts indicates that Block holds a “Moderate Buy” rating, with an average price target of $83.12. The stock has received three “Strong Buy” ratings, twenty-one “Buy” ratings, twelve “Hold” ratings, and one “Sell” rating from various equities research analysts.
Quarterly Earnings and Insider Activity
On November 6, 2023, Block announced its quarterly earnings, reporting an earnings per share (EPS) of $0.54, significantly exceeding analysts’ expectations of $0.25 by $0.29. The company generated revenue of $6.11 billion during the quarter, reflecting a year-over-year increase of 2.3%. Last year during the same period, Block reported an EPS of $0.53. Analysts project that the company will achieve an EPS of $2.54 for the current fiscal year.
In terms of insider trading, notable transactions occurred recently. Chrysty Esperanza, an insider at Block, sold 3,608 shares on November 21, 2023, for an average price of $61.40, amounting to a total of $221,531.20. Following this sale, Esperanza owns 123,198 shares valued at approximately $7,564,357.20, marking a decrease of 2.85% in her position. Additionally, on November 24, Brian Grassadonia sold 8,085 shares for an average price of $61.96, totaling $500,946.60, which reduced his holdings by 1.53%.
Over the past quarter, insiders have collectively sold 84,243 shares valued at around $5,844,695. Currently, insiders own approximately 10.85% of Block’s shares.
Institutional Investor Activity
Institutional investors have been active in the market regarding Block. Insight Wealth Strategies LLC increased its stake in the company by 12.4% during the fourth quarter, acquiring an additional 7,287 shares for a total of $4,291,000. Finivi Inc. also raised its position by 3.2% in the third quarter, bringing its holdings to 10,877 shares valued at $786,000.
Other institutional moves include AIA Group Ltd purchasing a new stake valued at approximately $3,058,000 and the New Mexico Educational Retirement Board acquiring shares worth about $1,814,000. In total, institutional investors and hedge funds hold 70.44% of Block’s stock.
About Block
Block, founded in 2009 by Jack Dorsey and Jim McKelvey, operates as a financial technology company that provides a variety of products and services aimed at facilitating electronic payments, commerce, and consumer finance. Its offerings include point-of-sale hardware and software, payment processing, invoicing, payroll, and lending services. The company also features a consumer platform that includes peer-to-peer payments, banking-like services, and investment opportunities. Recently, Block has diversified its portfolio to include music streaming and buy-now-pay-later services.
