Morgan Stanley Forecasts Strong Price Appreciation for BlackLine (NASDAQ:BL) Stock

Key Points

• Morgan Stanley has raised its price target for BlackLine from $65.00 to $68.00, indicating a potential upside of 30.21% from the stock's previous close with an "overweight" rating.
• BlackLine's quarterly earnings report revealed a net margin of 23.60% and a 7.2% increase in revenue year-over-year, with an EPS of $0.51, slightly above analyst expectations.
• The consensus rating for BlackLine is currently a "Hold", with 95.13% of the company's stock owned by institutional investors.

BlackLine (NASDAQ:BL - Get Free Report) had its price target raised by investment analysts at Morgan Stanley from $65.00 to $68.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. Morgan Stanley's target price suggests a potential upside of 40.64% from the company's previous close.

Other research analysts also recently issued reports about the company. Citigroup reiterated a "buy" rating and issued a $67.00 price target (up from $58.00) on shares of BlackLine in a report on Wednesday, July 16th. The Goldman Sachs Group decreased their price target on shares of BlackLine from $51.00 to $43.00 and set a "sell" rating on the stock in a report on Thursday, April 17th. BMO Capital Markets upped their price objective on BlackLine from $60.00 to $63.00 and gave the stock a "market perform" rating in a report on Wednesday. DA Davidson reaffirmed a "neutral" rating and issued a $56.00 target price on shares of BlackLine in a research report on Wednesday. Finally, Cantor Fitzgerald assumed coverage on BlackLine in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $58.00 price target for the company. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company's stock. According to MarketBeat.com, BlackLine has an average rating of "Hold" and an average price target of $61.08.

BlackLine Trading Down 4.3%

BL stock traded down $2.15 during midday trading on Wednesday, hitting $48.35. 995,655 shares of the company's stock were exchanged, compared to its average volume of 701,569. The stock has a market capitalization of $2.99 billion, a PE ratio of 37.48, a P/E/G ratio of 6.96 and a beta of 0.91. BlackLine has a 1-year low of $40.82 and a 1-year high of $66.25. The business has a 50-day simple moving average of $55.66 and a two-hundred day simple moving average of $52.85. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 1.61.

BlackLine (NASDAQ:BL - Get Free Report) last released its earnings results on Tuesday, August 5th. The technology company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.01. The firm had revenue of $172.03 million during the quarter, compared to analyst estimates of $170.87 million. BlackLine had a return on equity of 15.95% and a net margin of 13.05%. BlackLine's revenue was up 7.2% compared to the same quarter last year. During the same period last year, the business posted $0.58 earnings per share. On average, sell-side analysts predict that BlackLine will post 0.9 EPS for the current fiscal year.

Insider Transactions at BlackLine

In related news, CRO Mark Woodhams sold 1,856 shares of BlackLine stock in a transaction dated Wednesday, May 21st. The stock was sold at an average price of $54.65, for a total value of $101,430.40. Following the completion of the sale, the executive directly owned 61,390 shares in the company, valued at $3,354,963.50. This trade represents a 2.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Michelle D. Stalick sold 795 shares of BlackLine stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $55.14, for a total transaction of $43,836.30. Following the sale, the chief accounting officer owned 25,235 shares of the company's stock, valued at approximately $1,391,457.90. This represents a 3.05% decrease in their position. The disclosure for this sale can be found here. Company insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On BlackLine

A number of hedge funds have recently modified their holdings of the business. Atlantic Union Bankshares Corp bought a new position in BlackLine in the second quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of BlackLine during the second quarter worth $33,000. Quadrant Capital Group LLC grew its position in shares of BlackLine by 243.5% during the 4th quarter. Quadrant Capital Group LLC now owns 584 shares of the technology company's stock worth $35,000 after purchasing an additional 414 shares in the last quarter. Johnson Financial Group Inc. bought a new stake in shares of BlackLine during the 4th quarter valued at $73,000. Finally, Huntington National Bank increased its holdings in BlackLine by 57.5% in the 2nd quarter. Huntington National Bank now owns 1,235 shares of the technology company's stock valued at $70,000 after buying an additional 451 shares during the period. Institutional investors and hedge funds own 95.13% of the company's stock.

About BlackLine

BlackLine, Inc operates a cloud-based software platform which is designed to transform accounting and finance operations for organizations of all types and sizes. Its scalable platform supports critical accounting processes such as the financial close, account reconciliations, intercompany accounting, and controls assurance.