Short Interest in BlackRock (NYSE:BLK) Drops By 28.6%

Key Points

• Short interest in BlackRock decreased by 28.6% in September, with 1.52 million shares sold short as of the end of the month.
• Analysts are optimistic about BlackRock, with a consensus rating of "Moderate Buy" and a target price of approximately $1,299.29.
• In recent insider trading, CEO Laurence Fink sold over 12,000 shares of BlackRock, reducing his ownership by 4.57%.

BlackRock (NYSE:BLK - Get Free Report) was the target of a significant drop in short interest in the month of September. As of September 30th, there was short interest totaling 1,520,000 shares, a drop of 28.6% from the September 15th total of 2,130,000 shares. Currently, 1.1% of the company's stock are sold short. Based on an average daily trading volume, of 565,600 shares, the days-to-cover ratio is currently 2.7 days. Based on an average daily trading volume, of 565,600 shares, the days-to-cover ratio is currently 2.7 days. Currently, 1.1% of the company's stock are sold short.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Jefferies Financial Group raised their price objective on BlackRock from $1,196.00 to $1,325.00 and gave the company a "buy" rating in a research report on Tuesday, October 7th. UBS Group reiterated a "hold" rating on shares of BlackRock in a research note on Tuesday. Morgan Stanley upped their price target on shares of BlackRock from $1,362.00 to $1,486.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 15th. Telsey Advisory Group reiterated an "outperform" rating on shares of BlackRock in a research note on Tuesday, July 8th. Finally, Wells Fargo & Company dropped their price target on shares of BlackRock from $1,180.00 to $1,170.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 16th. Seventeen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, BlackRock presently has an average rating of "Moderate Buy" and a consensus price target of $1,299.29.

Insider Buying and Selling at BlackRock

In other BlackRock news, CEO Laurence Fink sold 12,054 shares of the firm's stock in a transaction on Friday, July 25th. The stock was sold at an average price of $1,125.43, for a total transaction of $13,565,933.22. Following the completion of the transaction, the chief executive officer owned 251,697 shares of the company's stock, valued at approximately $283,267,354.71. This trade represents a 4.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director J. Richard Kushel sold 17,142 shares of the firm's stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $1,120.50, for a total value of $19,207,611.00. Following the transaction, the director directly owned 61,369 shares of the company's stock, valued at $68,763,964.50. This represents a 21.83% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 59,232 shares of company stock valued at $67,055,346. 1.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On BlackRock

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Nisa Investment Advisors LLC increased its position in shares of BlackRock by 4.2% during the 3rd quarter. Nisa Investment Advisors LLC now owns 43,312 shares of the asset manager's stock valued at $50,496,000 after purchasing an additional 1,735 shares during the last quarter. Summit Place Financial Advisors LLC increased its position in shares of BlackRock by 0.4% during the 3rd quarter. Summit Place Financial Advisors LLC now owns 3,546 shares of the asset manager's stock valued at $4,134,000 after purchasing an additional 15 shares during the last quarter. Steigerwald Gordon & Koch Inc. increased its position in shares of BlackRock by 11.9% during the 3rd quarter. Steigerwald Gordon & Koch Inc. now owns 244 shares of the asset manager's stock valued at $284,000 after purchasing an additional 26 shares during the last quarter. Ferguson Wellman Capital Management Inc. increased its position in shares of BlackRock by 1.5% during the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 32,602 shares of the asset manager's stock valued at $38,010,000 after purchasing an additional 494 shares during the last quarter. Finally, Meridian Investment Counsel Inc. increased its position in shares of BlackRock by 10.2% during the 3rd quarter. Meridian Investment Counsel Inc. now owns 682 shares of the asset manager's stock valued at $795,000 after purchasing an additional 63 shares during the last quarter. Hedge funds and other institutional investors own 80.69% of the company's stock.

BlackRock Stock Performance

BLK traded down $4.35 during midday trading on Thursday, hitting $1,125.33. 371,516 shares of the company traded hands, compared to its average volume of 722,193. The company has a quick ratio of 4.04, a current ratio of 4.04 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $174.26 billion, a PE ratio of 28.94, a price-to-earnings-growth ratio of 1.95 and a beta of 1.45. The company's 50-day moving average is $1,140.24 and its 200 day moving average is $1,047.41. BlackRock has a 52 week low of $773.74 and a 52 week high of $1,219.94.

BlackRock (NYSE:BLK - Get Free Report) last posted its earnings results on Tuesday, October 14th. The asset manager reported $11.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $11.78 by ($0.23). BlackRock had a net margin of 26.64% and a return on equity of 15.36%. The company had revenue of $6.51 billion for the quarter, compared to the consensus estimate of $6.22 billion. During the same quarter in the prior year, the company posted $11.46 EPS. BlackRock's revenue was up 25.2% on a year-over-year basis. On average, research analysts expect that BlackRock will post 47.41 EPS for the current year.

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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