Block (NYSE:XYZ) Shares Gap Up Following Better-Than-Expected Earnings

Block, Inc. (NYSE:XYZ)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $54.53, but opened at $63.09. Block shares last traded at $63.2330, with a volume of 16,041,086 shares traded.

The technology company reported $0.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.39. Block had a return on equity of 5.54% and a net margin of 12.99%.The firm had revenue of $6.25 billion for the quarter. During the same quarter last year, the business earned $0.71 EPS. The company’s quarterly revenue was up 3.6% on a year-over-year basis.

Key Block News

Here are the key news stories impacting Block this week:

• Positive Sentiment: Block announced plans to cut roughly 4,000 jobs (about half the workforce) and to embed AI tools across the business; the market reacted strongly to the expected efficiency gains and lower long‑term operating costs. Block shares soar as Dorsey leans on AI to trim workforce
• Positive Sentiment: Multiple brokerages raised ratings/price targets today (Morgan Stanley upgraded to Overweight with a $93 target; Needham and BTIG set $90 targets; Cantor Fitzgerald reaffirmed Overweight at $70), supporting upside expectations from analysts. Benzinga coverage of analyst actions
• Positive Sentiment: Block reported quarterly EPS that beat consensus (reported $0.65 vs. Street ~$0.26 in some summaries) with revenue up modestly year‑over‑year, which helps validate near‑term profitability despite restructuring. Block (XYZ) Meets Q4 Earnings Estimates
• Neutral Sentiment: Wider market context: futures were mixed and macro data (producer prices) and other headline M&A stories are shaping sentiment today; Block’s move is a major headline among broader market noise. 5 Things to Know Before the Stock Market Opens
• Negative Sentiment: Restructuring carries near‑term costs — Block said the layoffs will incur roughly $450M–$500M in charges for severance and related expenses, which will weigh on near‑term results. WSJ: Jack Dorsey’s Block to Lay Off 4,000 Employees
• Negative Sentiment: Legal/PR risk: an investor rights firm (Halper Sadeh) has opened an inquiry into possible fiduciary breaches by Block’s officers/directors, adding potential litigation/settlement risk. Halper Sadeh press release

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on XYZ shares. Compass Point upgraded Block from a “strong sell” rating to a “hold” rating in a report on Friday, November 21st. Stephens restated an “overweight” rating and issued a $95.00 price objective on shares of Block in a report on Thursday, November 20th. Keefe, Bruyette & Woods dropped their target price on shares of Block from $90.00 to $85.00 and set an “outperform” rating for the company in a report on Friday, January 2nd. Royal Bank Of Canada reissued an “outperform” rating and issued a $90.00 price target on shares of Block in a research note on Thursday, November 20th. Finally, Truist Financial set a $72.00 price objective on shares of Block in a research note on Tuesday, January 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $82.59.

Insiders Place Their Bets

In other Block news, insider Brian Grassadonia sold 10,349 shares of the firm’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $50.00, for a total transaction of $517,450.00. Following the completion of the sale, the insider owned 503,784 shares of the company’s stock, valued at $25,189,200. This trade represents a 2.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Ajmere Dale sold 1,173 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $65.09, for a total value of $76,350.57. Following the transaction, the chief accounting officer owned 98,412 shares of the company’s stock, valued at approximately $6,405,637.08. This represents a 1.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 16,797 shares of company stock valued at $940,298. 10.85% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in Block by 23.1% in the 3rd quarter. Vanguard Group Inc. now owns 67,626,485 shares of the technology company’s stock valued at $4,887,366,000 after buying an additional 12,709,824 shares during the period. Capital World Investors grew its stake in Block by 41.8% during the 4th quarter. Capital World Investors now owns 16,023,441 shares of the technology company’s stock worth $1,042,966,000 after purchasing an additional 4,727,217 shares in the last quarter. Geode Capital Management LLC increased its holdings in Block by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 14,406,899 shares of the technology company’s stock worth $934,121,000 after purchasing an additional 67,560 shares during the period. Sands Capital Management LLC raised its position in Block by 12.2% in the 3rd quarter. Sands Capital Management LLC now owns 11,603,057 shares of the technology company’s stock valued at $838,553,000 after purchasing an additional 1,262,317 shares in the last quarter. Finally, Dragoneer Investment Group LLC purchased a new position in shares of Block in the 2nd quarter valued at about $627,233,000. Institutional investors and hedge funds own 70.44% of the company’s stock.

Block Stock Performance

The stock has a 50-day moving average price of $61.30 and a 200 day moving average price of $68.28. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $37.85 billion, a price-to-earnings ratio of 12.63, a P/E/G ratio of 1.07 and a beta of 2.67.

Block Company Profile

Block (NYSE:XYZ) is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block’s portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.

The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.