Are Block Inc. (NYSE:SQ) shares too expensive at this price?

As of close of business last night, Block Inc.’s stock clocked out at $80.79, down -1.07% from its previous closing price of $81.66. In other words, the price has decreased by -$0.87 from its previous closing price. On the day, 12094108 shares were traded. SQ stock price reached its highest trading level at $82.73 during the session, while it also had its lowest trading level at $79.51.

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To gain a deeper understanding of SQ’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 8.36 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 304.92. For the most recent quarter (mrq), Quick Ratio is recorded 1.80 and its Current Ratio is at 1.90. In the meantime, Its Debt-to-Equity ratio is 0.28 whereas as Long-Term Debt/Eq ratio is at 0.25.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Robert W. Baird on January 03, 2023, Upgraded its rating to Outperform and sets its target price to $78 from $62 previously.

Macquarie Upgraded its Neutral to Outperform on November 08, 2022, while the target price for the stock was maintained at $100.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Jan 18 when Henry Alyssa sold 30,769 shares for $75.29 per share. The transaction valued at 2,316,708 led to the insider holds 418,667 shares of the business.

Henry Alyssa sold 30,769 shares of SQ for $2,174,109 on Jan 11. The Square Lead now owns 418,667 shares after completing the transaction at $70.66 per share. On Jan 04, another insider, Grassadonia Brian, who serves as the Cash App Lead of the company, sold 5,253 shares for $65.76 each. As a result, the insider received 345,437 and left with 234,432 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 2.65 while its Price-to-Book (P/B) ratio in mrq is 2.90.

Stock Price History:

Over the past 52 weeks, SQ has reached a high of $149.00, while it has fallen to a 52-week low of $51.34. The 50-Day Moving Average of the stock is 66.39, while the 200-Day Moving Average is calculated to be 73.32.

Shares Statistics:

It appears that SQ traded 12.56M shares on average per day over the past three months and 12.04M shares per day over the past ten days. A total of 592.67M shares are outstanding, with a floating share count of 531.01M. Insiders hold about 0.30% of the company’s shares, while institutions hold 67.50% stake in the company. Shares short for SQ as of Oct 13, 2022 were 26.07M with a Short Ratio of 25.53M, compared to 25.13M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.42% and a Short% of Float of 4.94%.

Earnings Estimates

As of right now, 32 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $0.23 for the current quarter, with a high estimate of $0.42 and a low estimate of $0.11, while EPS last year was $0.37. The consensus estimate for the next quarter is $0.26, with high estimates of $0.5 and low estimates of $0.1.

Analysts are recommending an EPS of between $1.35 and $0.65 for the fiscal current year, implying an average EPS of $0.88. EPS for the following year is $1.53, with 38 analysts recommending between $1.92 and $0.98.

Revenue Estimates

A total of 36 analysts have provided revenue estimates for SQ’s current fiscal year. The highest revenue estimate was $18.51B, while the lowest revenue estimate was $16.88B, resulting in an average revenue estimate of $17.57B. In the same quarter a year ago, actual revenue was $17.66B, down -0.50% from the average estimate. Based on 38 analysts’ estimates, the company’s revenue will be $20.74B in the next fiscal year. The high estimate is $23.46B and the low estimate is $17.98B. The average revenue growth estimate for next year is up 18.00% from the average revenue estimate for this year.