Block (NYSE:XYZ) Shares Gap Up Following Strong Earnings
by Doug Wharley · The Cerbat GemBlock, Inc. (NYSE:XYZ – Get Free Report) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 changing hands.
The technology company reported $0.65 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.39. The company had revenue of $6.25 billion for the quarter. Block had a net margin of 12.99% and a return on equity of 5.54%. The company’s revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.71 earnings per share.
More 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
Analysts Set New Price Targets
XYZ has been the subject of a number of research analyst reports. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $70.00 price target on shares of Block in a report on Friday. BTIG Research reiterated a “buy” rating and set a $90.00 price target on shares of Block in a research note on Friday. Zacks Research downgraded shares of Block from a “strong-buy” rating to a “hold” rating in a research note on Monday, November 10th. Bank of America lifted their target price on Block from $86.00 to $88.00 and gave the stock a “buy” rating in a research report on Friday, November 21st. Finally, The Goldman Sachs Group dropped their price target on Block from $96.00 to $82.00 and set a “buy” rating on the stock in a research note on Friday, November 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Block presently has a consensus rating of “Moderate Buy” and an average price target of $82.59.
Read Our Latest Report on Block
Insider Buying and Selling
In other Block news, insider Brian Grassadonia sold 10,349 shares of Block stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $50.00, for a total value of $517,450.00. Following the transaction, the insider directly owned 503,784 shares in the company, valued at approximately $25,189,200. This trade represents a 2.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Ajmere Dale sold 1,173 shares of the company’s stock in a transaction that occurred 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 sale, the chief accounting officer owned 98,412 shares of the company’s stock, valued at $6,405,637.08. This trade represents a 1.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 16,797 shares of company stock valued at $940,298 over the last 90 days. Insiders own 10.85% of the company’s stock.
Hedge Funds Weigh In On Block
Large investors have recently modified their holdings of the business. Traub Capital Management LLC purchased a new position in shares of Block in the 2nd quarter valued at about $26,000. Nemes Rush Group LLC acquired a new stake in shares of Block during the 2nd quarter valued at approximately $26,000. City Holding Co. purchased a new stake in shares of Block during the 3rd quarter worth approximately $27,000. Cromwell Holdings LLC acquired a new stake in shares of Block in the 3rd quarter worth approximately $27,000. Finally, Cary Street Partners Investment Advisory LLC purchased a new position in Block in the 3rd quarter valued at approximately $28,000. 70.44% of the stock is owned by hedge funds and other institutional investors.
Block Stock Performance
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 stock has a market capitalization of $37.85 billion, a price-to-earnings ratio of 12.63, a PEG ratio of 1.07 and a beta of 2.67. The firm has a fifty day moving average of $61.30 and a 200-day moving average of $68.28.
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.