BlackRock (NYSE:BLK) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Wall Street sentiment is positive: BlackRock has an average analyst rating of “Moderate Buy” from 20 firms, with 16 buy ratings and an average price target of about $1,269.
• Insider selling was notable: President Robert Kapito and CEO Laurence Fink both sold shares in late April, reducing their holdings, though insiders still own 1.92% of the company.
• Recent fundamentals were solid: BlackRock beat quarterly earnings and revenue estimates, and it also announced a quarterly dividend of $5.73 per share, implying a 2.2% yield.

BlackRock (NYSE:BLK - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty ratings firms that are covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $1,269.0556.

A number of analysts have commented on the stock. Weiss Ratings upgraded shares of BlackRock from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, May 13th. BMO Capital Markets lifted their price target on BlackRock from $1,200.00 to $1,250.00 and gave the stock an "outperform" rating in a report on Monday, April 20th. Keefe, Bruyette & Woods boosted their price target on BlackRock from $1,150.00 to $1,240.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 15th. Barclays upped their price objective on BlackRock from $1,290.00 to $1,310.00 and gave the company an "overweight" rating in a research note on Wednesday, April 15th. Finally, Evercore reaffirmed an "outperform" rating and issued a $1,220.00 price objective on shares of BlackRock in a research report on Wednesday, April 15th.

Insider Buying and Selling at BlackRock

In related news, President Robert Kapito sold 8,739 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $1,056.60, for a total transaction of $9,233,627.40. Following the sale, the president owned 210,186 shares of the company's stock, valued at $222,082,527.60. This represents a 3.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Laurence Fink sold 33,900 shares of the stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $1,050.55, for a total value of $35,613,645.00. Following the sale, the chief executive officer directly owned 230,516 shares in the company, valued at approximately $242,168,583.80. This trade represents a 12.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.92% of the company's stock.

Institutional Investors Weigh In On BlackRock

Hedge funds have recently made changes to their positions in the stock. Evolution Wealth Management Inc. bought a new stake in shares of BlackRock in the fourth quarter worth $26,000. RMG Wealth Management LLC bought a new position in BlackRock during the 1st quarter worth $25,000. Hopwood Financial Services Inc. lifted its holdings in BlackRock by 866.7% during the 3rd quarter. Hopwood Financial Services Inc. now owns 29 shares of the asset manager's stock worth $34,000 after buying an additional 26 shares during the period. Birchbrook Inc. bought a new stake in shares of BlackRock in the 4th quarter valued at about $31,000. Finally, Basepoint Wealth LLC bought a new stake in shares of BlackRock in the 4th quarter valued at about $32,000. 80.69% of the stock is currently owned by institutional investors and hedge funds.

Key BlackRock News

Here are the key news stories impacting BlackRock this week:

• Negative Sentiment: BlackRock’s iShares Bitcoin Trust (IBIT) posted near-record outflows as Bitcoin dropped below key levels, signaling weaker demand for one of the firm’s most visible growth products. BlackRock Bitcoin ETF sees near-record outflows as BTC dips below $75K
• Negative Sentiment: Reports of a mysterious trader dumping about $1 billion from a BlackRock ETF and a separate large IBIT selloff reinforced concerns that institutional investors are de-risking crypto exposure. Mysterious trader dumps $1B from BlackRock ETF
• Negative Sentiment: BlackRock’s stock also fell as the broader market advanced, suggesting investors may be rotating out of the name amid short-term crypto-related noise. BlackRock (BLK) Stock Sinks As Market Gains: What You Should Know
• Neutral Sentiment: Outside crypto, BlackRock continues to benefit from scale and strong earnings momentum, with recent quarterly results beating estimates and revenue rising sharply year over year.

BlackRock Price Performance

Shares of BLK opened at $1,046.39 on Friday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 4.09 and a current ratio of 4.09. The stock has a 50 day simple moving average of $1,028.21 and a 200 day simple moving average of $1,053.75. BlackRock has a 52-week low of $917.39 and a 52-week high of $1,219.94. The firm has a market capitalization of $162.43 billion, a PE ratio of 26.26, a P/E/G ratio of 1.39 and a beta of 1.44.

BlackRock (NYSE:BLK - Get Free Report) last released its quarterly earnings results on Tuesday, April 14th. The asset manager reported $12.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $12.40 by $0.13. BlackRock had a return on equity of 14.74% and a net margin of 24.40%.The firm had revenue of $6.70 billion for the quarter, compared to the consensus estimate of $6.56 billion. During the same quarter last year, the business posted $9.64 EPS. The company's revenue for the quarter was up 27.0% on a year-over-year basis. Sell-side analysts predict that BlackRock will post 52.8 EPS for the current fiscal year.

BlackRock Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Stockholders of record on Friday, June 5th will be issued a dividend of $5.73 per share. This represents a $22.92 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Friday, June 5th. BlackRock's payout ratio is currently 57.53%.

About BlackRock

BlackRock, Inc is a global investment management firm that provides a broad range of products and services to institutional, intermediary and individual investors. Its core activities include portfolio management across active and index strategies, exchange-traded funds (ETFs) under the iShares brand, fixed income, equity and multi-asset solutions, as well as alternatives such as private equity, real estate and infrastructure. The firm also offers cash management and liquidity solutions and retirement-focused products designed for defined contribution and defined benefit investors.

In addition to traditional investment management, BlackRock is known for its technology and risk management capabilities, most prominently its Aladdin platform, which combines portfolio management, trading and risk analytics and is used both internally and licensed to external clients.

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