BlackRock (NYSE:BLK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “BlackRock’s shares have outperformed the industry in the past six months. This performance is supported by impressive earnings surprise history as the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters. While the company is undertaking initiatives to restructure its actively managed equities business and expand globally via acquisitions to further help top-line growth, mounting expenses mainly due to continued rise in marketing costs is likely to hurt the bottom-line growth to some extent. Also, the company's high dependence on overseas revenues remains a matter of concern. Further, a stretched valuation indicates limited upside potential for the stock.”
Several other equities research analysts have also issued reports on the company. Jefferies Group raised their price objective on BlackRock to $565.00 and gave the company a “hold” rating in a research note on Monday, January 15th. Credit Suisse Group reaffirmed a “buy” rating and issued a $680.00 price objective on shares of BlackRock in a research note on Friday, January 12th. Citigroup lowered BlackRock from a “buy” rating to a “neutral” rating and set a $625.00 price objective for the company. in a research note on Thursday, January 25th. Wells Fargo reaffirmed a “market perform” rating and issued a $555.00 price objective (up from $535.00) on shares of BlackRock in a research note on Tuesday, January 16th. Finally, Argus reaffirmed a “buy” rating and issued a $620.00 price objective (up from $520.00) on shares of BlackRock in a research note on Tuesday, January 16th. One analyst has rated the stock with a sell rating, six have given a hold rating and eight have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $567.15.
BlackRock (NYSE:BLK) traded up $2.12 during midday trading on Tuesday, hitting $555.95. The stock had a trading volume of 242,355 shares, compared to its average volume of 645,819. The company has a market capitalization of $90,590.30, a price-to-earnings ratio of 18.31, a price-to-earnings-growth ratio of 1.52 and a beta of 1.71. The company has a debt-to-equity ratio of 0.93, a quick ratio of 2.94 and a current ratio of 2.94. BlackRock has a 1 year low of $368.00 and a 1 year high of $594.52.
BlackRock (NYSE:BLK) last announced its quarterly earnings results on Friday, January 12th. The asset manager reported $6.24 EPS for the quarter, beating analysts’ consensus estimates of $5.94 by $0.30. The company had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.33 billion. BlackRock had a return on equity of 12.31% and a net margin of 39.79%. The firm’s revenue was up 20.0% on a year-over-year basis. During the same period in the prior year, the company earned $5.14 earnings per share. sell-side analysts forecast that BlackRock will post 28.46 earnings per share for the current fiscal year.
In other BlackRock news, insider Jeff A. Smith sold 425 shares of the firm’s stock in a transaction on Tuesday, January 16th. The stock was sold at an average price of $565.96, for a total transaction of $240,533.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark Mccombe sold 2,000 shares of BlackRock stock in a transaction on Monday, February 12th. The shares were sold at an average price of $520.64, for a total value of $1,041,280.00. The disclosure for this sale can be found here. Insiders have sold a total of 20,961 shares of company stock worth $11,375,444 over the last 90 days. 1.86% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of BLK. Somerset Trust Co raised its stake in shares of BlackRock by 2.7% during the 4th quarter. Somerset Trust Co now owns 3,449 shares of the asset manager’s stock valued at $1,772,000 after buying an additional 90 shares during the last quarter. Naples Global Advisors LLC increased its stake in shares of BlackRock by 1.7% in the 4th quarter. Naples Global Advisors LLC now owns 5,495 shares of the asset manager’s stock valued at $2,823,000 after purchasing an additional 93 shares in the last quarter. Benjamin F. Edwards & Company Inc. increased its stake in shares of BlackRock by 10.7% in the 4th quarter. Benjamin F. Edwards & Company Inc. now owns 960 shares of the asset manager’s stock valued at $493,000 after purchasing an additional 93 shares in the last quarter. Lau Associates LLC increased its stake in shares of BlackRock by 10.3% in the 4th quarter. Lau Associates LLC now owns 1,026 shares of the asset manager’s stock valued at $527,000 after purchasing an additional 96 shares in the last quarter. Finally, Assetmark Inc. increased its stake in shares of BlackRock by 57.1% in the 4th quarter. Assetmark Inc. now owns 278 shares of the asset manager’s stock valued at $143,000 after purchasing an additional 101 shares in the last quarter. 84.74% of the stock is owned by hedge funds and other institutional investors.
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BlackRock Company Profile
BlackRock, Inc (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients.
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