OAKLAND, CA—Esperanza Chrysty, the Chief Legal Officer of Block, Inc. (NYSE:SQ), recently sold 1,961 shares of the company's Class A Common Stock. The shares were sold at an average price of $91.43 each, totaling approximately $179,294. This transaction was carried out on November 21, 2024, to satisfy the issuer's income tax withholding obligations related to the vesting of restricted stock units. Following the sale, Chrysty retains ownership of 85,600 shares in the company.
In other recent news, Block Inc. has seen several significant developments. Mizuho (NYSE:MFG) has increased its price target for Block Inc. to $110, maintaining an Outperform rating, reflecting optimism regarding the company's growth prospects. This optimism is based on the projected growth of Block's three ecosystems, the Cash App, the Square ecosystem, and the Buy Now, Pay Later services, which are expected to contribute to a minimum of 15% gross profit growth by 2025.
Block Inc. has reported a 19% increase in gross profit, reaching $2.25 billion, and an improvement in adjusted free cash flow to $1.5 billion. The company is also projecting a 14% year-over-year growth for Q4 2024. In addition, Block introduced a new inheritance feature for its Bitkey bitcoin wallet, aimed at simplifying the process of transferring digital assets to beneficiaries.
Analysts from Bernstein and BMO Capital Markets have maintained their Outperform ratings on Block Inc., with price targets of $90 and $94 respectively. Both firms highlight the Gross Payment Volume growth as a key indicator for Block's performance. As part of its future plans, 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.
InvestingPro Insights
As Block, Inc. (NYSE:SQ) continues to make headlines with insider transactions, investors may find additional value in examining the company's financial health and market position. According to InvestingPro data, Block is currently trading near its 52-week high, which aligns with the recent insider sale at $91.43 per share. This price point also reflects the stock's strong performance, with InvestingPro Tips highlighting high returns over the last year, month, and three months.
Despite the recent insider sale, which was primarily for tax purposes, Block's financial outlook appears promising. InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will be profitable. This positive forecast is particularly noteworthy given Block's position as a prominent player in the Financial Services industry.
It's worth noting that Block's stock price movements are quite volatile, which could explain the timing of the insider sale. However, the company's liquid assets exceed short-term obligations, suggesting a solid financial foundation. For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Block, providing a deeper understanding of the company's market position and potential.
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