Block Inc. (NYSE:SQ) finished Thursday with a subtraction of -$0.47 to close at $62.24, a downside of -0.75 percent. An average of 16,411,580 shares of common stock have been traded in the last five days. There was a fall of -$11.31 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 9,628,845 shares traded, while the 50-day average volume stands at 9,569,706.
SQ stock has decreased by -12.61% in the last month. The company shares reached their 1-month lowest point of $61.81 on 08/10/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $51.34 and a high of $92.10 in 52 weeks. It has reached a new high 13 times so far this year and lost -0.95% or -$0.60 in price. In spite of this, the price is down -32.42% from the 52-week high.
Insider Transactions
SQ stock investors should be aware that Block Inc. (SQ) stock had its last reported insider trading activity 11 days ago on Jul 31. In this transaction, the insider spent $295,200. Counsel Lead, Esperanza Chrysty, disposed of 2,500 shares at a price of $80.00 on Jul 19. The insider now owns more than $200,000 worth of shares. Prior to that, Counsel Lead Esperanza Chrysty went on to Sale 3,150 shares at $70.00 each on Jul 11. An amount of $220,500 was transacted.
Valuation Metrics
Block Inc. (SQ) stock’s beta is 2.33. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.35, the price-to-book (PB) ratio at 2.13, and the price-to-cash flow ratio at 135.55.
Financial Health
The quick ratio of Block Inc. for the three months ended June 29 was 1.90, and the current ratio was 1.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.23 and a total debt to equity ratio of 0.23 for the quarter ending June 29. Block Inc.’s EBITDA margin for the year ending June 29 is 3.43%, while its operating margin for the same period stands at -1.70%. Its gross profit as reported stood at $5.99 billion compared to revenue of $17.53 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 -0.90%.
Earnings Surprise
For the three-month period that ended June 29, Block Inc. had $1.12 billion in cash and short-term investments compared to $289.85 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 -$122.51 million in the quarter, while revenues of -$16.84 million were shrunk -69.79%. The analyst consensus anticipated Block Inc.’s latest quarter earnings to come in at $0.36 per share, but it turned out to be $0.39, a 8.30% surprise. For the quarter, EBITDA amounted to $47.75 million. Shareholders own equity worth $610.08 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 10 August was 25.72%, suggesting the stock is oversold, with historical volatility in this time frame at 73.61%.
As of today, SQ’s price is $62.97 -15.38% or -$11.31 from its 5-day moving average. SQ is currently trading -18.32% lower than its 20-day SMA and -15.87% lower than its 100-day SMA. However, the stock’s current price level is +5.78% above the SMA50 and +11.16% above the SMA200.
The stochastic %K and %D were 1.51% and 1.98%, respectively, and the average true range (ATR) was 3.21. With the 14-day stochastic at 2.19% and the average true range at 3.15, the RSI (14) stands at 33.61%. The stock has reached -6.69 on the 9-day MACD Oscillator while the 14-day reading was at -9.54.
Analyst Ratings
Truist reiterated its a Buy rating on Block Inc. (NYSE: SQ), but raised their price target to $90, indicating a potential price increase of 30.84% for the stock. The consensus rating for Block Inc. (SQ) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell SQ, while 12 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 29 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 $34.98 and $114.62, with a median target of $90.00. Taking a look at these predictions, the average price target given by analysts for Block Inc. (SQ) stock is $86.95.
