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Block, Inc. (NYSE:XYZ) announced Wednesday that its board of directors has approved a $5 billion increase to its existing share repurchase program for its Class A common stock. The announcement was made in a press release and disclosed in a filing with the U.S. Securities and Exchange Commission. The move comes as the stock has fallen approximately 32% year-to-date and appears significantly undervalued according to InvestingPro analysis, which could make the buyback particularly timely for the prominent financial services player.
As of September 30, approximately $1.1 billion remained available under Block’s previous $4 billion share repurchase authorization.
According to the company, repurchases may be conducted through open market purchases or privately negotiated transactions, subject to market conditions and applicable legal requirements. Block stated that open market repurchases may be carried out in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, and the company may also use Rule 10b5-1 plans to facilitate share buybacks.
The company noted that the repurchase program does not obligate it to acquire any specific amount of its Class A common stock and may be suspended at any time at the company’s discretion. The timing and number of shares to be repurchased will depend on factors including the stock price, business and market conditions, regulatory requirements, alternative investment opportunities, and acquisition opportunities.
Block stated the aim of the program is to return capital to shareholders as part of its capital allocation strategy. The information is based on a press release statement and SEC filing. InvestingPro data shows Block maintains a "GOOD" overall financial health score, with particularly strong metrics in growth and cash flow. Investors seeking deeper insights can access 12+ additional ProTips and comprehensive analysis in Block’s Pro Research Report, available among 1,400+ top stocks covered by the service.
In other recent news, Block, Inc. announced a $5 billion increase to its stock repurchase program as part of its capital allocation strategy. This announcement coincides with the company’s 2025 Investor Day in San Francisco, where senior leadership is presenting full-year 2026 financial guidance and a three-year financial outlook. Truist Securities upgraded Block’s stock from Hold to Buy, citing an improved risk/reward profile, and increased its price target to $68.00. William Blair also reiterated an Outperform rating for Block, maintaining a positive long-term view despite challenges in the fintech market.
Additionally, Block launched a campaign advocating for a tax exemption on small bitcoin transactions. The initiative, titled "Bitcoin is Everyday Money," aims for a $600 de minimis tax exemption for goods and services bought with bitcoin. This would change the current classification of bitcoin as property, which requires taxable event reporting even for minor purchases. These developments come as Block seeks to re-engage investors and provide clarity on its financial strategies moving forward.
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