What You Need To Know About Block Inc. (SQ)


Block Inc. (NYSE:SQ) finished Thursday with a subtraction of -$3.52 to close at $55.93, a downside of -5.92 percent. An average of 15,581,601 shares of common stock have been traded in the last five days. There was a fall of -$13.25 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 13,126,925 shares traded, while the 50-day average volume stands at 13,875,136.

SQ stock has decreased by -21.16% in the last month. The company shares reached their 1-month lowest point of $55.02 on 09/22/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $56.01 and a high of $270.16 in 52 weeks. It has reached a new high 1 time so far this year and lost -65.37% or -$105.58 in price. In spite of this, the price is down -79.30% from the 52-week high.

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Insider Transactions

9 days have passed since Block Inc. (SQ) last reported insider trading activity. Henry Alyssa, who is Square Lead, most recently acquired $30,769 shares at $66.35 per share on Sep 14. In this transaction, the insider spent $2,041,649. Square Lead, Henry Alyssa, disposed of 30,769 shares at a price of $65.79 on Sep 07. The insider now owns more than $2,024,392 worth of shares. Prior to that, Chief Legal Ofcr. & Corp. Sec. Whiteley Sivan went on to Sale 105 shares at $67.78 each on Sep 02. An amount of $7,117 was transacted.

Valuation Metrics

Block Inc. (SQ) stock’s beta is 2.44. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.16, the price-to-book (PB) ratio at 1.93, and the price-to-cash flow ratio at 68.77.

Financial Health

The quick ratio of Block Inc. for the three months ended June 29 was 1.80, and the current ratio was 1.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.24 and a total debt to equity ratio of 0.27 for the quarter ending June 29. Its gross profit as reported stood at $4.42 billion compared to revenue of $17.66 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Block Inc.’s return on assets was -2.20%.

Earnings Surprise

For the three-month period that ended June 29, Block Inc. had $939.0 million in cash and short-term investments compared to $192.62 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$208.01 million in the quarter, while revenues were grew 198.08%. The analyst consensus anticipated Block Inc.’s latest quarter earnings to come in at $0.17 per share, but it turned out to be $0.18, a 5.90% surprise. For the quarter, EBITDA amounted to -$122.93 million. Shareholders own equity worth $590.19 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Block Inc. (SQ) price momentum. RSI 9-day as of the close on 22 September was 22.33%, suggesting the stock is oversold, with historical volatility in this time frame at 40.39%.

As of today, SQ’s price is $61.09 -19.15% or -$13.25 from its 5-day moving average. SQ is currently trading -22.98% lower than its 20-day SMA and -43.81% lower than its 100-day SMA. However, the stock’s current price level is -12.81% below the SMA50 and -68.88% below the SMA200.

The stochastic %K and %D were 3.25% and 4.43%, respectively, and the average true range (ATR) was 3.92. With the 14-day stochastic at 4.19% and the average true range at 4.09, the RSI (14) stands at 29.56%. The stock has reached -6.39 on the 9-day MACD Oscillator while the 14-day reading was at -7.65.

Analyst Ratings

Mizuho downgraded Block Inc. (NYSE: SQ) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Block Inc. (SQ) among analysts is Overweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell SQ, while 12 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 5 analysts, while 26 others rate it as a “buy”.

What is SQ’s price target for the next 12 months?

Analysts predict a range of price targets between $55.00 and $175.00, with a median target of $110.00. Taking a look at these predictions, the average price target given by analysts for Block Inc. (SQ) stock is $110.19.


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