Intel stock spikes after report of possible US government stake
Dale Ajmere, the Chief Accounting Officer of Block, Inc. (NYSE:XYZ), recently sold 1,467 shares of the company’s Class A common stock. The shares were sold at a price of $70.32 each, totaling approximately $103,159. Following this transaction, Ajmere retains ownership of 82,499 shares in the company. The stock, currently trading at $62.84, has experienced significant volatility recently, with InvestingPro data showing a 21.7% decline in the past week. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels.
The sale was made to cover the company’s income tax withholding obligations related to the vesting of restricted stock units. This transaction was disclosed in a recent SEC filing, providing transparency to investors about changes in insider holdings. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 2.33, indicating robust liquidity. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into XYZ’s financial position.
In other recent news, Block Inc. reported fourth-quarter earnings that did not meet revenue and earnings per share expectations, although its adjusted EBITDA exceeded consensus estimates. Piper Sandler responded by lowering its price target from $101 to $85, maintaining an Overweight rating, while Mizuho (NYSE:MFG) Securities reduced its target from $110 to $86, keeping an Outperform rating. Canaccord Genuity also cut its price target from $120 to $100 but maintained a Buy rating, noting that Block’s gross profit met guidance, though adjusted EPS fell short. BMO Capital Markets upgraded Block’s stock rating from Market Perform to Outperform, despite lowering its price target from $100 to $89, citing an attractive entry point for investors.
Morgan Stanley (NYSE:MS) adjusted Block’s stock rating from Underweight to Equalweight, setting a new price target of $65, reflecting a more balanced risk/reward perspective. The firm noted the potential growth of Block’s Cash App and Square Seller segments, with Cash App’s valuation potential estimated between $25-$30 per share. Block’s management remains optimistic about the second half of 2025, particularly for Cash App, with plans to expand features like Borrow and Buy Now, Pay Later (BNPL). Block is also investing in marketing and its go-to-market team to capture more market share, aiming for a 240 basis point increase in adjusted operating margins by the end of 2025.
Despite challenges such as stagnation in Cash App’s Monthly Active Users and increased consumer receivable losses, Mizuho sees potential in targeting higher-income households and enhancing monetization. Block has integrated BNPL capabilities with the Cash App Card, expected to boost gross profit growth. BMO Capital highlights Block’s attractive valuation and potential for improved investor sentiment as Cash App and Square segments accelerate gross profit growth. These developments reflect a mix of cautious optimism and strategic adjustments among analysts and Block’s management.
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