Resona Asset Management Co. Ltd. Decreases Holdings in BlackRock $BLK

Key Points

• Resona Asset Management trimmed its BlackRock stake by 3.6% in the fourth quarter, selling 1,711 shares and leaving it with 45,513 shares valued at about $48.9 million.
• BlackRock beat earnings expectations in its latest quarter, reporting EPS of $12.53 on revenue of $6.70 billion, with revenue up 27% year over year.
• The stock has drawn mixed sentiment: analysts remain broadly bullish, but BlackRock’s private credit business is facing DOJ scrutiny, which adds regulatory risk even as the company pursues growth opportunities like private lending and potential IPO investments.

Resona Asset Management Co. Ltd. decreased its position in shares of BlackRock (NYSE:BLK - Free Report) by 3.6% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 45,513 shares of the asset manager's stock after selling 1,711 shares during the period. Resona Asset Management Co. Ltd.'s holdings in BlackRock were worth $48,865,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently bought and sold shares of BLK. Birchbrook Inc. purchased a new stake in BlackRock during the fourth quarter valued at approximately $31,000. LFA Lugano Financial Advisors SA purchased a new stake in BlackRock during the fourth quarter valued at approximately $32,000. Hopwood Financial Services Inc. lifted its position in BlackRock by 866.7% during the third quarter. Hopwood Financial Services Inc. now owns 29 shares of the asset manager's stock valued at $34,000 after acquiring an additional 26 shares during the last quarter. Collier Financial purchased a new stake in BlackRock during the third quarter valued at approximately $36,000. Finally, Goodman Advisory Group LLC purchased a new position in shares of BlackRock in the third quarter worth $37,000. Hedge funds and other institutional investors own 80.69% of the company's stock.

BlackRock Trading Up 0.3%

Shares of BlackRock stock opened at $1,085.60 on Tuesday. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.09 and a quick ratio of 4.09. The firm has a fifty day moving average price of $1,010.27 and a 200 day moving average price of $1,054.76. BlackRock has a 1 year low of $917.39 and a 1 year high of $1,219.94. The stock has a market cap of $168.52 billion, a PE ratio of 27.25, a price-to-earnings-growth ratio of 1.41 and a beta of 1.44.

BlackRock (NYSE:BLK - Get Free Report) last issued its earnings results on Tuesday, April 14th. The asset manager reported $12.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $12.40 by $0.13. BlackRock had a net margin of 24.40% and a return on equity of 14.74%. The firm had revenue of $6.70 billion during the quarter, compared to analysts' expectations of $6.56 billion. During the same quarter last year, the company posted $9.64 earnings per share. The firm's revenue was up 27.0% compared to the same quarter last year. Equities research analysts predict that BlackRock will post 52.77 earnings per share for the current year.

Key Headlines Impacting BlackRock

Here are the key news stories impacting BlackRock this week:

• Positive Sentiment: BlackRock reportedly struck a €15 billion partnership with Citi to expand private European lending, which could deepen its presence in private credit and generate more fee revenue. Citi strikes €15bn partnership with BlackRock for private European lending
• Positive Sentiment: A wealth manager bought $5.8 million of BlackRock’s Active Country Rotation ETF, a small but favorable signal for continued demand for BlackRock-managed products. This Wealth Manager Just Bet $5.8 Million on BlackRock's Active Country Rotation ETF
• Positive Sentiment: BlackRock is also being linked to a potential multi-billion-dollar investment in SpaceX’s IPO, which highlights its ability to participate in marquee capital-markets opportunities. BlackRock is said to weigh investing billions in SpaceX IPO
• Neutral Sentiment: BlackRock disclosed it crossed above a 3% stake in Fagron, reflecting active portfolio positioning but not a major stock-moving event by itself. Disclosure of transparency notifications from BlackRock, Inc.
• Neutral Sentiment: Commentary around BlackRock ETFs and long-term valuation suggests ongoing investor debate about the stock’s upside, but nothing conclusive enough to move shares on its own. Vanguard’s VOO vs. BlackRock’s DGRO: One ETF Offers Better Upside, Says Investor
• Negative Sentiment: BlackRock’s private credit fund is facing DOJ scrutiny over valuation practices, adding regulatory and reputational risk to an important growth area. BlackRock's Troubled Private Credit Fund Draws DOJ Scrutiny
• Negative Sentiment: Separate reports said the Manhattan U.S. Attorney’s office is seeking information on BlackRock TCP Capital Corp., reinforcing concern that private-credit oversight could become a larger issue. BlackRock private credit fund’s valuations are probed by DOJ
• Negative Sentiment: BlackRock’s Bitcoin ETF saw accelerated selling after weeks of inflows, which may weigh on sentiment around its crypto-linked assets under management. BlackRock accelerates Bitcoin selloff amid bearish sentiment
• Negative Sentiment: BlackRock reportedly capped withdrawals from one of its private credit funds, a sign of stress in the asset class that may raise investor caution. The Asset Manager Whose Private Credit Fund Just Capped Withdrawals. Should BlackRock Investors Worry?
• Negative Sentiment: Harvard reportedly sold its entire Ethereum stake after previously buying BlackRock’s Ethereum ETF, a data point that could suggest softer enthusiasm for the product category. Harvard sold off its entire $87 million Ethereum stake just one quarter after buying it

Insider Buying and Selling at BlackRock

In related news, Director Stephen Cohen sold 225 shares of the firm's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $1,069.56, for a total transaction of $240,651.00. Following the completion of the transaction, the director owned 5,661 shares of the company's stock, valued at $6,054,779.16. This trade represents a 3.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, President Robert Kapito sold 8,739 shares of the firm's stock in a transaction 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 transaction, the president directly owned 210,186 shares of the company's stock, valued at approximately $222,082,527.60. This trade represents a 3.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 45,249 shares of company stock worth $47,671,714. 1.92% of the stock is currently owned by company insiders.

Analyst Ratings Changes

BLK has been the subject of a number of research analyst reports. Morgan Stanley raised 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. Evercore reaffirmed an "outperform" rating and issued a $1,220.00 price target on shares of BlackRock in a report on Wednesday, April 15th. Barclays raised 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. The Goldman Sachs Group raised their price target on shares of BlackRock from $1,181.00 to $1,313.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Finally, TD Cowen decreased 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 research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $1,269.06.

BlackRock 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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