BlackRock (NYSE: BLK) has received an average recommendation of “Moderate Buy” from twenty brokerages currently covering the investment management firm. This rating reflects a blend of three hold recommendations and seventeen buy recommendations, according to MarketBeat.
The average twelve-month price target set by analysts for BlackRock stands at $1,302.59. Notably, several firms have recently revised their price targets. Morgan Stanley increased its target from $1,362.00 to $1,486.00, assigning an “overweight” rating on October 15, 2023. Similarly, Argus raised its target from $1,165.00 to $1,330.00 on the same date, providing a “buy” rating. UBS Group maintained a “hold” rating in a report dated October 21, while JPMorgan Chase & Co. adjusted its price objective from $1,093.00 to $1,242.00, giving the stock a “neutral” rating on October 2. Lastly, BNP Paribas Exane elevated its target from $1,160.00 to $1,265.00 with an “outperform” rating on October 9.
BlackRock’s Financial Performance
BlackRock released its latest earnings results on October 14, 2023, reporting earnings per share (EPS) of $11.55 for the quarter. This figure fell short of analysts’ consensus estimates of $11.78 by $0.23. The firm’s revenue for the quarter totaled $6.51 billion, surpassing the consensus estimate of $6.22 billion. BlackRock’s net margin was reported at 26.64%, with a return on equity of 14.80%. Year-over-year, revenue increased by 25.2%, compared to $11.46 EPS during the same quarter the previous year. Analysts project that BlackRock will post an EPS of $47.41 for the current fiscal year.
In addition to its earnings, BlackRock announced a quarterly dividend of $5.21 per share, to be paid on December 23, 2023. Investors of record as of December 5 will receive this dividend, which represents an annualized payout of $20.84 and a yield of 1.9%. The company’s dividend payout ratio currently stands at 53.59%.
Insider Trading Activity
In related news, Director Rachel Lord sold 12,000 shares of BlackRock on October 20, 2023, at an average price of $1,165.04, totaling approximately $13.98 million. Following this transaction, Lord retained 7,205 shares, valued at around $8.39 million, marking a 62.48% decrease in her ownership.
Additionally, Chief Financial Officer Martin Small sold 1,258 shares on December 1, 2023, at an average price of $1,043.38, amounting to approximately $1.31 million. After this sale, Small holds 6,209 shares, valued at about $6.48 million, reflecting a 16.85% decrease in his share ownership. Disclosures regarding these transactions are available through the Securities and Exchange Commission (SEC).
Institutional Investor Actions
Recent activity among institutional investors suggests a continued interest in BlackRock’s stock. Vanguard Group Inc. increased its position by 1.7% in the second quarter, now owning 13,991,264 shares valued at approximately $14.68 billion after acquiring an additional 227,192 shares. Geode Capital Management LLC also boosted its stake by 1.1%, owning 3,143,429 shares valued at around $3.28 billion.
Norges Bank initiated a new stake in BlackRock during the second quarter, valued at $2.64 billion. Furthermore, Franklin Resources Inc. increased its stake by 72.5%, holding 2,005,358 shares worth approximately $2.10 billion after purchasing an additional 842,901 shares. Capital International Investors also lifted its holdings by 0.6% in the third quarter, now owning 1,841,088 shares valued at about $2.15 billion. Collectively, institutional investors and hedge funds own 80.69% of BlackRock’s stock.
BlackRock, Inc. is a globally recognized investment management firm, providing services to a diverse clientele that includes institutional, intermediary, and individual investors, as well as pension plans, insurance companies, and governments.
