BlackRock Inc. (BLK) Cut to Hold at Zacks Investment Research
BlackRock Inc. (NYSE:BLK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “BlackRock’s third-quarter 2016 earnings surpassed the Zacks Consensus Estimate, primarily due to a decline in total expenses. However, lower revenues acted as a headwind. Further, increased dependence on overseas revenue and regulatory restrictions can negatively affect the company’s financials. In addition, increase in regulatory compliance costs, compensation costs as well as higher marketing costs are expected to keep expenses high, going forward. Nonetheless, the company has expanded largely via acquisitions, with most of its AUM growth attributable to the same. Moreover, the company remains well positioned to capitalize on opportunistic acquisitions, driven by its strong liquidity position. Also, its initiatives to gain market share in the ETF business are expected to drive revenue growth, going forward.”
BLK has been the topic of a number of other research reports. Deutsche Bank AG reiterated a “buy” rating on shares of BlackRock in a report on Monday, June 27th. Goldman Sachs Group Inc. cut shares of BlackRock from a “conviction-buy” rating to a “buy” rating and increased their price target for the company from $390.00 to $400.00 in a report on Monday, August 8th. Credit Suisse Group AG reiterated a “buy” rating on shares of BlackRock in a report on Tuesday, July 12th. Vetr upgraded shares of BlackRock from a “hold” rating to a “buy” rating and set a $382.97 price target on the stock in a report on Wednesday, August 10th. Finally, Citigroup Inc. reiterated a “buy” rating and set a $400.00 price target on shares of BlackRock in a report on Monday, October 10th. Seven investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. BlackRock has a consensus rating of “Buy” and a consensus price target of $385.26.
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Shares of BlackRock (NYSE:BLK) traded down 0.57% during midday trading on Wednesday, reaching $354.55. 61,587 shares of the company’s stock were exchanged. BlackRock has a one year low of $280.55 and a one year high of $376.65. The firm has a 50 day moving average of $363.11 and a 200-day moving average of $357.55. The stock has a market cap of $58.31 billion, a price-to-earnings ratio of 18.89 and a beta of 1.46.
BlackRock (NYSE:BLK) last announced its earnings results on Tuesday, October 18th. The company reported $5.14 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.98 by $0.16. BlackRock had a net margin of 28.12% and a return on equity of 11.07%. The business earned $2.84 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the firm earned $5.00 earnings per share. The business’s revenue for the quarter was down 2.5% on a year-over-year basis. On average, equities research analysts anticipate that BlackRock will post $19.23 earnings per share for the current year.
In other news, insider Ryan Stork sold 1,400 shares of the firm’s stock in a transaction on Monday, August 1st. The shares were sold at an average price of $367.24, for a total transaction of $514,136.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Susan Wagner sold 79,346 shares of the firm’s stock in a transaction on Friday, July 29th. The shares were sold at an average price of $366.35, for a total transaction of $29,068,407.10. Following the sale, the director now owns 587,365 shares in the company, valued at $215,181,167.75. The disclosure for this sale can be found here. Insiders own 2.20% of the company’s stock.
Hedge funds have recently made changes to their positions in the stock. Cohen & Steers Inc. increased its stake in shares of BlackRock by 5,080.7% in the second quarter. Cohen & Steers Inc. now owns 1,484,377 shares of the company’s stock worth $38,371,000 after buying an additional 1,455,725 shares in the last quarter. Emerald Acquisition Ltd. bought a new stake in shares of BlackRock during the second quarter worth about $87,641,000. JPMorgan Chase & Co. increased its stake in shares of BlackRock by 7.0% in the second quarter. JPMorgan Chase & Co. now owns 3,372,334 shares of the company’s stock worth $1,155,126,000 after buying an additional 219,654 shares in the last quarter. Alleghany Corp DE increased its stake in shares of BlackRock by 77.8% in the second quarter. Alleghany Corp DE now owns 400,000 shares of the company’s stock worth $136,984,000 after buying an additional 175,000 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake in shares of BlackRock by 2.1% in the second quarter. Vanguard Group Inc. now owns 7,326,122 shares of the company’s stock worth $2,509,417,000 after buying an additional 150,093 shares in the last quarter. Hedge funds and other institutional investors own 81.57% of the company’s stock.
BlackRock, Inc is an investment management company. The Company provides a range of investment and risk management services to institutional and retail clients across the world. Its offerings include single and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments.
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