Block (NYSE:XYZ) Announces Earnings Results, Beats Estimates By $0.29 EPS

Block (NYSE:XYZ) issued its quarterly earnings data on Thursday. The technology company reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $0.29, Zacks reports. The firm had revenue of $6.11 billion for the quarter. Block had a return on equity of 8.49% and a net margin of 12.99%.Block’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.53 earnings per share.

Block Stock Down 7.7%

Shares of NYSE XYZ traded down $5.44 on Friday, reaching $65.49. 21,392,953 shares of the company’s stock traded hands, compared to its average volume of 5,641,801. The business’s 50 day simple moving average is $75.80 and its two-hundred day simple moving average is $69.78. Block has a 12 month low of $44.27 and a 12 month high of $99.26. The company has a market cap of $39.92 billion, a price-to-earnings ratio of 13.20, a price-to-earnings-growth ratio of 2.89 and a beta of 2.73. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.16.

Insider Activity at Block

In related news, insider Brian Grassadonia sold 35,145 shares of the firm’s stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $80.00, for a total transaction of $2,811,600.00. Following the completion of the sale, the insider owned 535,896 shares of the company’s stock, valued at $42,871,680. This trade represents a 6.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Chrysty Esperanza sold 3,609 shares of the business’s stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $73.20, for a total transaction of $264,178.80. Following the completion of the transaction, the insider owned 127,212 shares of the company’s stock, valued at approximately $9,311,918.40. The trade was a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 119,041 shares of company stock worth $9,052,531 over the last quarter. 10.85% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Block

Large investors have recently bought and sold shares of the business. Ameriprise Financial Inc. bought a new position in Block during the 2nd quarter valued at about $535,305,000. Viking Global Investors LP purchased a new position in shares of Block during the second quarter valued at approximately $368,213,000. SC US Ttgp LTD. bought a new position in Block during the second quarter valued at approximately $67,304,000. California State Teachers Retirement System bought a new position in Block during the second quarter valued at approximately $58,278,000. Finally, Bamco Inc. NY purchased a new stake in Block in the second quarter worth approximately $32,768,000. 70.44% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Citigroup upgraded shares of Block to a “strong-buy” rating in a report on Thursday, October 23rd. Mizuho lifted their target price on shares of Block from $71.00 to $88.00 and gave the company an “outperform” rating in a research note on Thursday, August 14th. Wells Fargo & Company upgraded shares of Block to a “strong-buy” rating in a research report on Wednesday, October 22nd. Compass Point reissued a “sell” rating and issued a $65.00 price target (down from $80.00) on shares of Block in a research note on Friday, August 8th. Finally, Deutsche Bank Aktiengesellschaft set a $82.00 price objective on shares of Block and gave the stock a “buy” rating in a report on Thursday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $82.58.

Block Company Profile

Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.