Zacks Investment Research Lowers BlackRock Inc. (BLK) to Hold
BlackRock Inc. (NYSE:BLK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors 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.”
Other equities analysts have also issued research reports about the company. Barclays PLC reissued a “hold” rating on shares of BlackRock in a report on Sunday, July 17th. Deutsche Bank AG reissued a “buy” rating and set a $392.00 price target (up previously from $372.00) on shares of BlackRock in a report on Sunday, July 10th. Jefferies Group reissued a “hold” rating on shares of BlackRock in a report on Friday, August 5th. Keefe, Bruyette & Woods lowered BlackRock from an “outperform” rating to a “market perform” rating and lowered their price objective for the company from $390.00 to $383.00 in a report on Friday, July 15th. Finally, Vetr lowered BlackRock from a “buy” rating to a “hold” rating and set a $382.97 price objective on the stock. in a report on Tuesday, August 16th. Seven equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $385.26.
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Shares of BlackRock (NYSE:BLK) opened at 356.59 on Wednesday. The stock has a market cap of $58.65 billion, a P/E ratio of 19.00 and a beta of 1.46. The firm’s 50-day moving average price is $363.11 and its 200 day moving average price is $357.55. BlackRock has a 1-year low of $280.55 and a 1-year high of $376.65.
BlackRock (NYSE:BLK) last released its quarterly earnings results on Tuesday, October 18th. The company reported $5.14 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $4.98 by $0.16. BlackRock had a return on equity of 11.07% and a net margin of 28.12%. The firm had revenue of $2.84 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the company posted $5.00 earnings per share. The business’s revenue was down 2.5% on a year-over-year basis. On average, equities analysts expect that BlackRock will post $19.23 earnings per share for the current fiscal year.
In other BlackRock news, Director James Grosfeld sold 10,911 shares of the business’s stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $371.98, for a total value of $4,058,673.78. Following the completion of the transaction, the director now directly owns 514,402 shares in the company, valued at approximately $191,347,255.96. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Susan Wagner sold 79,346 shares of the business’s stock in a transaction on Friday, July 29th. The shares were sold at an average price of $366.35, for a total value of $29,068,407.10. Following the completion of the transaction, the director now owns 587,365 shares of the company’s stock, valued at $215,181,167.75. The disclosure for this sale can be found here. 2.20% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of BLK. Sun Life Financial INC acquired a new position in shares of BlackRock during the first quarter valued at $91,954,000. Feltz Wealth PLAN Inc. acquired a new position in shares of BlackRock during the second quarter valued at $126,000. Mycio Wealth Partners LLC increased its position in shares of BlackRock by 3.3% in the second quarter. Mycio Wealth Partners LLC now owns 379 shares of the company’s stock valued at $130,000 after buying an additional 12 shares during the period. Ropes Wealth Advisors LLC increased its position in shares of BlackRock by 0.3% in the second quarter. Ropes Wealth Advisors LLC now owns 388 shares of the company’s stock valued at $133,000 after buying an additional 1 shares during the period. Finally, Citizens Financial Group Inc RI increased its position in shares of BlackRock by 16.1% in the first quarter. Citizens Financial Group Inc RI now owns 389 shares of the company’s stock valued at $133,000 after buying an additional 54 shares during the period. Institutional investors own 81.57% of the company’s stock.
BlackRock Company Profile
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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