Block (NYSE:XYZ) Stock Price Down 5.4% – What’s Next?

Block, Inc. (NYSE:XYZ)’s stock price was down 5.4% on Tuesday . The company traded as low as $61.11 and last traded at $60.8750. Approximately 8,150,461 shares traded hands during trading, a decline of 10% from the average daily volume of 9,015,761 shares. The stock had previously closed at $64.35.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on XYZ shares. Cowen restated a “buy” rating on shares of Block in a report on Friday, August 8th. Citigroup raised shares of Block to a “strong-buy” rating in a research note on Thursday, October 23rd. Piper Sandler dropped their target price on shares of Block from $58.00 to $55.00 and set an “underweight” rating on the stock in a report on Friday, November 7th. BNP Paribas downgraded Block from a “strong-buy” rating to a “hold” rating and set a $86.00 price target for the company. in a report on Tuesday, September 2nd. Finally, KeyCorp reissued an “overweight” rating and issued a $94.00 price objective on shares of Block in a research report on Wednesday, October 22nd. Three analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $83.42.

Block Price Performance

The business has a 50-day moving average price of $71.75 and a two-hundred day moving average price of $70.99. 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 company has a market capitalization of $36.50 billion, a price-to-earnings ratio of 12.11, a price-to-earnings-growth ratio of 2.65 and a beta of 2.66.

Block (NYSE:XYZ) last posted its quarterly earnings results on Thursday, November 6th. The technology company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.29. The business had revenue of $6.11 billion during the quarter. Block had a net margin of 12.99% and a return on equity of 5.54%. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.53 EPS. As a group, research analysts anticipate that Block, Inc. will post 2.54 EPS for the current year.

Insider Activity at Block

In other Block news, insider Arnaud Weber sold 7,095 shares of Block stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $61.40, for a total transaction of $435,633.00. Following the completion of the transaction, the insider owned 259,136 shares in the company, valued at approximately $15,910,950.40. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Ajmere Dale sold 2,724 shares of the business’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $61.40, for a total value of $167,253.60. Following the sale, the chief accounting officer directly owned 99,585 shares of the company’s stock, valued at $6,114,519. This represents a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 99,198 shares of company stock valued at $6,968,155 over the last quarter. 10.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Allworth Financial LP grew its holdings in Block by 34.6% during the third quarter. Allworth Financial LP now owns 5,332 shares of the technology company’s stock worth $385,000 after buying an additional 1,371 shares in the last quarter. IFP Advisors Inc bought a new position in Block during the 3rd quarter valued at $2,712,000. Strategic Advocates LLC purchased a new position in Block during the 3rd quarter worth $47,000. CIBC Private Wealth Group LLC grew its stake in shares of Block by 15.9% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 11,086 shares of the technology company’s stock worth $801,000 after acquiring an additional 1,524 shares in the last quarter. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Block in the 3rd quarter worth $5,494,000. Institutional investors own 70.44% of the company’s stock.

About Block

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.