BlackRock (NYSE:BLK) Announces Earnings Results

Key Points

• BlackRock reported earnings of $11.55 per share, missing analysts' estimates of $11.78 by $0.23, while revenue reached $6.51 billion, exceeding expectations of $6.22 billion.
• The company declared a quarterly dividend of $5.21 per share, representing an annualized rate of $20.84 with a yield of 1.8%.
• Analysts have mixed views on BlackRock, with recent target price adjustments ranging from $1,160.00 to $1,350.00, and currently, the stock holds an average rating of "Moderate Buy".

BlackRock (NYSE:BLK - Get Free Report) issued its earnings results on Tuesday. The asset manager reported $11.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $11.78 by ($0.23), Zacks reports. BlackRock had a return on equity of 15.53% and a net margin of 29.68%.The business had revenue of $6.51 billion during the quarter, compared to the consensus estimate of $6.22 billion. During the same period in the prior year, the business earned $11.46 EPS.

BlackRock Price Performance

NYSE BLK opened at $1,156.20 on Tuesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 4.04 and a quick ratio of 4.04. The firm has a market capitalization of $179.04 billion, a PE ratio of 27.95, a P/E/G ratio of 2.15 and a beta of 1.45. BlackRock has a 12 month low of $773.74 and a 12 month high of $1,184.13. The company's 50 day simple moving average is $1,135.66 and its 200 day simple moving average is $1,037.02.

BlackRock Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 23rd. Investors of record on Friday, September 5th were paid a dividend of $5.21 per share. This represents a $20.84 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Friday, September 5th. BlackRock's dividend payout ratio (DPR) is currently 50.39%.

Insider Buying and Selling at BlackRock

In other BlackRock news, Director Fabrizio Freda sold 4,434 shares of BlackRock stock in a transaction that occurred on Thursday, July 24th. The shares were sold at an average price of $1,122.81, for a total value of $4,978,539.54. Following the transaction, the director owned 3,506 shares in the company, valued at approximately $3,936,571.86. The trade was a 55.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director J. Richard Kushel sold 17,142 shares of BlackRock stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $1,120.50, for a total transaction of $19,207,611.00. Following the completion of the transaction, the director owned 61,369 shares in the company, valued at approximately $68,763,964.50. This trade represents a 21.83% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 66,494 shares of company stock worth $74,694,573. 1.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On BlackRock

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Viking Global Investors LP acquired a new stake in BlackRock during the 2nd quarter worth approximately $204,713,000. Raymond James Financial Inc. boosted its position in BlackRock by 10.0% during the 2nd quarter. Raymond James Financial Inc. now owns 470,469 shares of the asset manager's stock worth $493,640,000 after buying an additional 42,700 shares during the period. Harris Associates L P boosted its position in BlackRock by 13.8% during the 2nd quarter. Harris Associates L P now owns 260,716 shares of the asset manager's stock worth $273,557,000 after buying an additional 31,582 shares during the period. Tidal Investments LLC boosted its position in BlackRock by 23.3% during the 2nd quarter. Tidal Investments LLC now owns 30,121 shares of the asset manager's stock worth $31,604,000 after buying an additional 5,701 shares during the period. Finally, Blue Edge Capital LLC acquired a new stake in BlackRock during the 2nd quarter worth approximately $5,090,000. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have issued reports on BLK shares. BNP Paribas Exane raised their target price on shares of BlackRock from $1,160.00 to $1,265.00 and gave the stock an "outperform" rating in a report on Thursday, October 9th. Citigroup raised their target price on shares of BlackRock from $1,200.00 to $1,350.00 and gave the stock a "buy" rating in a report on Monday, September 29th. Zacks Research cut BlackRock from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 14th. Keefe, Bruyette & Woods lifted their price target on BlackRock from $1,215.00 to $1,300.00 and gave the company an "outperform" rating in a report on Monday. Finally, Wells Fargo & Company cut their price target on BlackRock from $1,180.00 to $1,170.00 and set an "overweight" rating on the stock in a report on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, BlackRock currently has an average rating of "Moderate Buy" and an average target price of $1,263.31.

About BlackRock

BlackRock, Inc is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks.

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