Thoughts on the director selling in Block Inc. (SQ2), please
Hi Guys, I see that there is some selling by Directors and Management in SQ2. Can you give me a read on this and the stock in general please.
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Answer
Hi Wayne,
A number of change in director interest notifications were published on the stock this week, mostly from department heads selling shares, although the CFO/COO and CAO (Chief Accounting Officer) also taking some money off the table. While we never like to see insiders selling down, it is important to put this into perspective – the sales are for a very small percentage of total holdings for each, and the timing relates to a employee sale window post the 1Q earnings call.
The result was a beat however guidance was mixed with the company taking a more conservative stance rather than extrapolating earnings growth for the start of the year through the remaining 3 quarters. Given their scale, Block is well positioned to handle any regulatory changings coming through the payments or BNPL space however they are heavily reliant on a healthy economy and we see better way to play an improving outlook if and when it comes.
