Block (NYSE:XYZ) Sets New 1-Year Low After Analyst Downgrade

Block, Inc. (NYSE:XYZ)’s share price reached a new 52-week low during trading on Friday after Royal Bank of Canada lowered their price target on the stock from $86.00 to $63.00. Royal Bank of Canada currently has an outperform rating on the stock. Block traded as low as $44.27 and last traded at $44.90, with a volume of 9994956 shares changing hands. The stock had previously closed at $58.48.

Several other brokerages have also weighed in on XYZ. Stephens reissued an “overweight” rating and set a $75.00 price objective on shares of Block in a report on Friday. Canaccord Genuity Group lowered their price objective on Block from $100.00 to $80.00 and set a “buy” rating for the company in a report on Friday. Robert W. Baird reduced their target price on Block from $105.00 to $80.00 and set an “outperform” rating on the stock in a report on Tuesday, April 8th. Keefe, Bruyette & Woods upgraded Block from a “market perform” rating to an “outperform” rating and lowered their price target for the company from $87.00 to $80.00 in a report on Tuesday, March 18th. Finally, Evercore ISI initiated coverage on Block in a research note on Wednesday, April 9th. They set an “in-line” rating and a $52.00 price objective on the stock. Eight analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. According to data from MarketBeat, Block presently has a consensus rating of “Moderate Buy” and an average target price of $80.03.

Insiders Place Their Bets

In other news, insider Owen Britton Jennings sold 1,263 shares of the company’s stock in a transaction on Wednesday, April 2nd. The stock was sold at an average price of $56.19, for a total value of $70,967.97. Following the completion of the sale, the insider now owns 181,904 shares in the company, valued at $10,221,185.76. This represents a 0.69 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Amrita Ahuja sold 1,976 shares of Block stock in a transaction dated Wednesday, April 2nd. The stock was sold at an average price of $56.19, for a total value of $111,031.44. Following the transaction, the chief financial officer now directly owns 233,878 shares in the company, valued at approximately $13,141,604.82. The trade was a 0.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 19,324 shares of company stock worth $1,297,662. 10.49% of the stock is owned by corporate insiders.

Institutional Trading of Block

Several institutional investors and hedge funds have recently added to or reduced their stakes in XYZ. Versant Capital Management Inc increased its holdings in shares of Block by 67.7% in the fourth quarter. Versant Capital Management Inc now owns 394 shares of the technology company’s stock valued at $33,000 after buying an additional 159 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its holdings in shares of Block by 48.2% in the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 418 shares of the technology company’s stock worth $36,000 after acquiring an additional 136 shares during the last quarter. Rosenberg Matthew Hamilton raised its position in shares of Block by 18.3% during the fourth quarter. Rosenberg Matthew Hamilton now owns 982 shares of the technology company’s stock worth $83,000 after purchasing an additional 152 shares during the period. Ulland Investment Advisors LLC lifted its holdings in shares of Block by 92.3% during the fourth quarter. Ulland Investment Advisors LLC now owns 2,135 shares of the technology company’s stock valued at $181,000 after purchasing an additional 1,025 shares during the last quarter. Finally, Simon Quick Advisors LLC acquired a new position in shares of Block in the 4th quarter valued at $203,000. 70.44% of the stock is owned by institutional investors and hedge funds.

Block Stock Performance

The stock has a 50 day moving average price of $56.86. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $28.85 billion, a PE ratio of 10.24, a PEG ratio of 0.72 and a beta of 2.77.

Block (NYSE:XYZ) last released its earnings results on Thursday, February 20th. The technology company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.11). The firm had revenue of $6.03 billion during the quarter, compared to analysts’ expectations of $6.23 billion. Block had a return on equity of 5.80% and a net margin of 11.92%. Analysts expect that Block, Inc. will post 2.54 EPS for the current fiscal year.

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.