Dale Ajmere, Chief Accounting Officer of Block, Inc. (NYSE:SQ), a $57 billion market cap fintech company, recently sold shares of the company in two separate transactions, according to an SEC filing. According to InvestingPro data, Block's stock has shown strong momentum with a 40% gain over the past six months. On January 2, Ajmere sold 544 shares at a price of $86.52 each, totaling $47,066. Additionally, 1,500 shares were sold at $86.79 each, amounting to $130,185. These sales were conducted under a pre-established Rule 10b5-1 trading plan. Following these transactions, Ajmere holds 83,966 shares directly. The stock currently trades at a P/E ratio of 54, with InvestingPro analysis suggesting the shares may be slightly undervalued. Investors can access detailed valuation metrics and 10+ additional ProTips through the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Block Inc. has reported a 19% increase in gross profit, reaching $2.25 billion, and an improved adjusted free cash flow of $1.5 billion. The company also expects a 14% year-over-year growth for Q4 2024. In terms of strategic partnerships, Block has joined forces with global foodservice distributor Sysco (NYSE:SYY) to offer advanced technology solutions to restaurants worldwide.
Block has also been the subject of several analyst upgrades. Raymond (NS:RYMD) James upgraded Block's stock rating to Outperform, while Bernstein SocGen Group maintained an Outperform rating, citing potential growth from Bitcoin-related endeavors. Monness, Crespi, Hardt shifted its rating from Neutral to Buy, emphasizing robust growth in Cash App's monetization, user base, and inflows.
In the realm of product development, Block introduced a new inheritance feature for its Bitkey bitcoin wallet, simplifying the process of transferring digital assets to beneficiaries after the owner's passing. Looking forward, 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 are the latest developments in Block's strategy for continued growth.
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