Amrita Ahuja, the Chief Financial Officer and Chief Operating Officer of Block, Inc. (NYSE:SQ), sold a total of $910,434 worth of company stock over two consecutive days, according to a recent SEC filing.
On November 21, Ahuja sold 6,661 shares at an average price of $91.43, amounting to $609,015. This transaction was carried out to satisfy income tax withholding obligations related to the vesting of restricted stock units. The following day, November 22, she sold an additional 3,266 shares at an average price of $92.29, totaling $301,419. This sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on August 17, 2023.
Following these transactions, Ahuja holds 243,701 shares of Block, Inc. These sales were reported in compliance with regulatory requirements and reflect part of her ongoing financial management strategy.
In other recent news, Block Inc. demonstrated robust financial growth with a 19% rise in gross profit, reaching $2.25 billion. Block's adjusted free cash flow also saw a significant improvement, increasing to $1.5 billion from $945 million. The company is projecting a 14% year-over-year growth for Q4 2024.
In addition to these financial milestones, Block introduced a new inheritance feature for its Bitkey bitcoin wallet, aiming to simplify the transfer of digital assets after the owner's passing. This development is part of Block's ongoing commitment to enhancing user experience and security in digital asset management.
Analysts from Mizuho (NYSE:MFG), Bernstein, and BMO Capital Markets have all shown confidence in Block's prospects. Mizuho increased its price target for Block from $94.00 to $110.00, maintaining an Outperform rating, based on the company's growth potential. Bernstein and BMO Capital Markets also retained their Outperform ratings, setting price targets at $90.00 and $94.00 respectively.
Looking ahead, Block aims to achieve the Rule of 40 by 2026, focusing on mid-teens gross profit growth and a mid-20% adjusted operating income margin. These recent developments highlight Block's strategic direction and potential for continued growth.
InvestingPro Insights
Block, Inc. (NYSE:SQ) has been showing strong performance in the market, as evidenced by recent InvestingPro data. The company's stock has seen impressive returns, with a 54.67% price total return over the past year and a 41.16% return in the last three months. This aligns with the recent insider selling activity by CFO and COO Amrita Ahuja, who may be capitalizing on the stock's upward momentum.
Despite the recent stock sales by Ahuja, Block's financial outlook remains positive. An InvestingPro Tip indicates that net income is expected to grow this year, which could further support the stock's performance. Additionally, the company's market capitalization stands at a robust $56.35 billion, underscoring its significant presence in the financial services industry.
It's worth noting that Block's stock is trading near its 52-week high, with the current price at 96.42% of that peak. This strength is reflected in the company's P/E ratio of 52.94, suggesting investors are willing to pay a premium for Block's growth potential.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Block, Inc., providing a deeper understanding of the company's financial health and market position.
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