Block (NYSE:SQ) Shares Gap Up – Here’s Why

Block, Inc. (NYSE:SQ) gapped up prior to trading on Friday . The stock had previously closed at $86.75, but opened at $90.65. Block shares last traded at $89.80, with a volume of 1,152,017 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SQ. Royal Bank of Canada restated an “outperform” rating and issued a $88.00 target price on shares of Block in a report on Monday, October 21st. Raymond James upgraded Block from a “market perform” rating to an “outperform” rating and set a $115.00 price objective on the stock in a report on Friday. Canaccord Genuity Group raised their target price on shares of Block from $95.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, November 12th. Piper Sandler restated an “overweight” rating and set a $83.00 price target on shares of Block in a report on Monday, November 11th. Finally, Keefe, Bruyette & Woods upped their price target on shares of Block from $80.00 to $105.00 and gave the company a “market perform” rating in a research report on Monday, December 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and twenty-seven have issued a buy rating to the stock. According to MarketBeat, Block presently has a consensus rating of “Moderate Buy” and an average target price of $96.94.

Block Stock Performance

The stock has a market cap of $56.07 billion, a P/E ratio of 50.82, a P/E/G ratio of 1.23 and a beta of 2.50. The firm has a 50 day moving average of $86.81 and a two-hundred day moving average of $72.91. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.07 and a current ratio of 2.07.

Insider Activity

In other Block news, insider Brian Grassadonia sold 8,328 shares of the company’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $91.18, for a total value of $759,347.04. Following the completion of the transaction, the insider now owns 563,894 shares of the company’s stock, valued at $51,415,854.92. This represents a 1.46 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Ajmere Dale sold 1,000 shares of Block stock in a transaction on Monday, November 11th. The stock was sold at an average price of $80.00, for a total transaction of $80,000.00. Following the sale, the chief accounting officer now owns 88,791 shares in the company, valued at $7,103,280. This represents a 1.11 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 23,599 shares of company stock valued at $2,120,494. 10.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Block

A number of hedge funds and other institutional investors have recently bought and sold shares of SQ. SouthState Corp raised its stake in shares of Block by 85.3% in the third quarter. SouthState Corp now owns 391 shares of the technology company’s stock worth $26,000 after acquiring an additional 180 shares during the last quarter. True Wealth Design LLC raised its position in Block by 64.7% in the 3rd quarter. True Wealth Design LLC now owns 494 shares of the technology company’s stock worth $33,000 after purchasing an additional 194 shares during the last quarter. Versant Capital Management Inc lifted its holdings in Block by 67.7% during the 4th quarter. Versant Capital Management Inc now owns 394 shares of the technology company’s stock worth $33,000 after buying an additional 159 shares in the last quarter. V Square Quantitative Management LLC bought a new position in Block in the 3rd quarter valued at $46,000. Finally, Asset Dedication LLC increased its stake in shares of Block by 392.7% in the 2nd quarter. Asset Dedication LLC now owns 877 shares of the technology company’s stock valued at $57,000 after buying an additional 699 shares during the period. 70.44% of the stock is owned by institutional investors and hedge funds.

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.