Block Inc (NASDAQ:SQ) will be reporting its third-quarter earnings on Thursday. Wall Street expects 87 cents in EPS and $6.24 billion in revenues when the company reports after market hours.

The stock is up 52.09% over the past year and 7.5% year-to-date. In the lead-up to Block's third-quarter earnings, notable activity surrounding the stock could impact sentiment.

Block Bulls Ride High as Ark Sells, Dorsey Restructures Tidal

Cathie Wood's Ark Invest recently sold 31,771 shares of the Bitcoin (CRYPTO: BTC) — focused Block, valued at approximately $2.5 million, through the ARK Innovation ETF (NYSE:ARKK) and the ARK Fintech Innovation ETF (NYSE:ARKF).

Meanwhile, CEO Jack Dorsey announced another round of layoffs at Tidal, Block's music streaming subsidiary, aiming to reshape the business with a leaner, more agile team. These moves underscore Block's focus on cost efficiency and resource allocation as it prepares for upcoming earnings.

Let's look at what the charts indicate for Block stock and how the stock currently maps against Wall Street estimates.

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Block Stock Riding A Bullish Wave, But Overheating?

Block stock is currently on a strong bullish trend. Its share price of $78.80 sits comfortably above key moving averages, signaling sustained buying pressure.

Chart created using Benzinga Pro

With the five, 20 and 50-day exponential moving averages all trending below the current price, the momentum suggests continued bullish potential. SQ's eight-day and 20-day simple moving averages at $74.06 and $73.26, respectively, both flash bullish signals, confirming short-term strength.

On a broader scale, the 50-day SMA at $68.77 and the 200-day SMA at $69.41 further validate the bullish case, marking solid support levels under SQ's current price.

The Moving Average Convergence Divergence (MACD) indicator, at a healthy 1.95, adds to the positive outlook. However, with Block's Relative Strength Index (RSI) now hovers at 72.05. The stock is in the overbought zone, triggering a potential for a near-term pullback.

Investors should watch if Block can sustain this buying pressure or if the RSI calls for a cooling-off period.

Analysts See 5% Upside

Block Ratings & Consensus Estimates: The consensus analyst rating on Block stock stands at a Buy currently with a price target of $86.49. The latest analyst ratings for Block stock, from RBC Capital, BMO Capital and New Street Research, imply a 5.49% upside, with an average price target of $83.33.

SQ Price Action: Block stock closed the trading day Wednesday at $77.64, up 7.27%.

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