Block Inc. (SQ), formerly Square, is an online payments and financial services company. It develops hardware and software to aid businesses operations, including point-of-sale hardware, payments processing and analytics software, a business debit card called Square Card, and a peer-to-peer payment service called Cash App. The company generates revenue through two reported segments: Cash App and Seller, the latter of which includes a variety of managed payment services, software, hardware, and other financial services. Block generated net income of $213 million and revenue of $9.5 billion in 2020.
- The top shareholders of Block are Jack Dorsey, Morgan Stanley, Vanguard Group, BlackRock, T. Rowe Price.
- Jack Dorsey, the company's CEO, owns 12.7%.
- The top five institutional investors own roughly 34% of the company.
Institutional investors hold the majority of Block shares, with about 34% of total shares outstanding held by the top five investors. A special note that "institutional" doesn't necessarily mean a financial institution. The term refers to the type of U.S. Securities and Exchange Commission (SEC) filings used to track major investments.
13F forms are used for large money managers that hold more than $100 million in assets, while 13D or 13G forms are used for people or institutions which own more than 5% of a company's stock. Each of these forms provides a way for investors to track significant positions made by major investors.
1. Jack Dorsey
Jack Dorsey owns 50.8 million shares of Block, representing 12.7% of total shares outstanding. Dorsey, whose net worth as of October 2021 was approximately $14.1 billion, co-founded social networking company Twitter Inc. (TWTR) in 2006. He co-founded Block in 2009 and also serves as CEO.
"Insider" refers to people in senior management positions and members of the board of directors, as well as people or entities that own more than 10% of the company's stock. In this context, it has nothing to do with insider trading.
2. Morgan Stanley
Morgan Stanley owns 27 million shares of Block, representing 6.8% of total shares outstanding. The company is a multinational financial services and investment firm whose offerings include mutual funds and related products.
The firm has capital markets, sales and trading, research, and investment banking branches, and its investment management businesses has asset under management (AUM) of roughly $1.5 trillion. Morgan Stanley's Advantage Portfolio (MPAIX) holds Block, which is the largest holding in the portfolio, representing about 4.1% of assets.
3. Vanguard Group Inc.
Vanguard Group owns 25 million shares of Block representing 6.3% of total shares outstanding. The company is primarily a mutual fund and ETF management company with about $7.2 trillion in global AUM.
4. T. Rowe Price
T. Rowe Price owns 13.7 million Block shares, giving it a 3.4% stake in the company. The investment firm has $1.69 trillion in AUM.
5. Jennison Associates
Jennison Associates owns roughly 3.4% of the company, or 13.6 million shares. Jennison is an investment management firm with $240 billion in AUM across 80 investment portfolios.
Diversity & Inclusiveness of Square (Block)
As part of our effort to improve the awareness of the importance of diversity in companies, we offer investors a glimpse into the transparency of more than just who are the shareholders at Block. We highlight the company's commitment to diversity, inclusiveness, and social responsibility as a whole. Find out how Block reports the diversity of its management and workforce. The ✔ shows if Block discloses its data about the diversity of its board of directors, C-Suite, general management, and employees overall across a variety of markets.
|Block Diversity & Inclusiveness Reporting|
|Race||Gender||Ability||Veteran Status||Sexual Orientation|
|Board of Directors|
|General Management||✔ (U.S. Only)||✔|
|Employees||✔ (U.S. Only)||✔||✔|
Square Inc. "Form 10-Q for the quarterly period ended June 30, 2020," Pages 5, 36.
Securities & Exchange Commission. "FORM 10-K."
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WhaleWisdom. "Square Inc (SQ)."
Forbes. "#53 Jack Dorsey."
Morgan Stanley. "About Morgan Stanley Investment Management."
Morgan Stanley. "What We Do."
Morgan Stanley. "Advantage Portfolio."
Vanguard Group Inc. "Fast facts about Vanguard."
T. Rowe Price. "Investor Relations."
Jennison Associations. "FOCUS.CULTURE.STABILITY."