Capital World Investors Sells 2,472,588 Shares of BlackRock $BLK

Key Points

• Capital World Investors sharply cut its BlackRock stake by 71.5% in the fourth quarter, selling 2.47 million shares and leaving it with 983,617 shares worth about $1.05 billion.
• BlackRock reported a solid quarter, with earnings per share of $12.53 and revenue of $6.70 billion, both ahead of analyst expectations; revenue rose 27% year over year.
• The company also announced a quarterly dividend of $5.73 per share, which equates to a 2.3% yield and an annualized payout of $22.92.

Capital World Investors lessened its holdings in BlackRock (NYSE:BLK - Free Report) by 71.5% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 983,617 shares of the asset manager's stock after selling 2,472,588 shares during the quarter. Capital World Investors owned 0.63% of BlackRock worth $1,053,080,000 as of its most recent SEC filing.

A number of other large investors have also recently modified their holdings of BLK. Brighton Jones LLC boosted its holdings in shares of BlackRock by 23.1% in the 4th quarter. Brighton Jones LLC now owns 1,575 shares of the asset manager's stock valued at $1,615,000 after purchasing an additional 296 shares in the last quarter. Bison Wealth LLC increased its holdings in shares of BlackRock by 1.6% during the fourth quarter. Bison Wealth LLC now owns 1,052 shares of the asset manager's stock worth $1,078,000 after buying an additional 17 shares in the last quarter. Schnieders Capital Management LLC. acquired a new position in shares of BlackRock during the second quarter worth $259,000. Nebula Research & Development LLC acquired a new position in shares of BlackRock during the second quarter worth $548,000. Finally, Osterweis Capital Management Inc. acquired a new position in shares of BlackRock during the second quarter worth $98,000. Institutional investors and hedge funds own 80.69% of the company's stock.

More BlackRock News

Here are the key news stories impacting BlackRock this week:

• Positive Sentiment: BlackRock’s iShares Bitcoin Trust (IBIT) reported its first daily inflow in 13 days, bringing in $47.66 million and ending a recent streak of outflows. That suggests at least some stabilization in one of BlackRock’s most-watched ETF products. BlackRock Records First Bitcoin ETF Inflow in 13 Days
• Positive Sentiment: BlackRock executives sounded constructive on the macro backdrop, with commentary on a solid U.S. jobs report, AI-driven market trends, and the Fed’s likely patience on rates. Softer rate-hike expectations can support risk assets and asset-manager sentiment. BlackRock's Rieder Talks Jobs Report, AI and Markets
• Positive Sentiment: BlackRock disclosed that its combined stake in Orion Corporation rose above 5%, highlighting ongoing portfolio activity and continued influence as a major global shareholder. Orion Corporation Disclosure Under Chapter 9 Section 10 of the Securities Market Act (BlackRock, Inc.)
• Neutral Sentiment: One analyst write-up said BlackRock’s fair value estimate was trimmed only slightly, pointing to mixed Street views rather than a major shift in fundamentals. Why The Narrative Around BlackRock (BLK) Is Shifting After Mixed Analyst Target Resets
• Neutral Sentiment: BlackRock’s portfolio manager Jeffrey Rosenberg said the Fed is not in a hurry to raise rates, reinforcing the view that policy may remain supportive for markets, though the comment itself is not company-specific. Fed Is In No Hurry To Raise Rates, BlackRock's Rosenberg Says
• Negative Sentiment: BlackRock was also included in a sector-wide selloff tied to redemption concerns around Cliffwater’s Corporate Lending Fund, which raised fresh worries about liquidity in alternative credit products. Alternative Managers Shares Slip as Cliffwater Redemption Fears Mount
• Negative Sentiment: Broader crypto headlines remain a headwind: Bitcoin ETFs saw large outflows over the prior 13 days, and BlackRock’s IBIT was cited as a major contributor to the pressure, which can weigh on sentiment toward BLK’s ETF growth story. Bitcoin ETFs Lose $4.4B as Outflows Hit 13-Day Record Run

BlackRock Stock Performance

Shares of BlackRock stock opened at $996.54 on Monday. The company has a current ratio of 4.09, a quick ratio of 4.09 and a debt-to-equity ratio of 0.34. The business has a 50-day moving average price of $1,033.61 and a two-hundred day moving average price of $1,051.55. BlackRock has a 1-year low of $917.39 and a 1-year high of $1,219.94. The company has a market cap of $154.69 billion, a P/E ratio of 25.01, a PEG ratio of 1.30 and a beta of 1.42.

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

BlackRock Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Friday, June 5th will be given a $5.73 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $22.92 annualized dividend and a yield of 2.3%. BlackRock's dividend payout ratio (DPR) is presently 57.53%.

Insider Activity

In other BlackRock news, President Robert Kapito sold 8,739 shares of BlackRock stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $1,056.60, for a total transaction of $9,233,627.40. Following the transaction, the president owned 210,186 shares of the company's stock, valued at $222,082,527.60. This trade represents a 3.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Laurence Fink sold 33,900 shares of BlackRock stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $1,050.55, for a total transaction of $35,613,645.00. Following the transaction, the chief executive officer directly owned 230,516 shares in the company, valued at approximately $242,168,583.80. This represents a 12.82% decrease in their position. The SEC filing for this sale provides additional information. 1.92% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research analysts have recently issued reports on BLK shares. Jefferies Financial Group lowered their price target on shares of BlackRock from $1,351.00 to $1,199.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. Morgan Stanley upped their price target on shares of BlackRock from $1,368.00 to $1,393.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. Barclays upped their price target on shares of BlackRock from $1,290.00 to $1,310.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. Keefe, Bruyette & Woods upped their price target on shares of BlackRock from $1,150.00 to $1,240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 15th. Finally, TD Cowen lowered their price target on shares of BlackRock from $1,238.00 to $1,105.00 and set a "hold" rating for the company in a report on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,269.06.

BlackRock Company Profile

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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