BlackRock, Inc. (NYSE:BLK) Downgraded by Zacks Investment Research
BlackRock, Inc. (NYSE:BLK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “BlackRock’s shares have underperformed the Zacks categorized Investment Management industry, in the last six months. The company’s second-quarter 2017 earnings lagged the Zacks Consensus Estimate on lower-than-expected revenue growth. Mounting costs (largely due to continuous marketing campaign) remains a major concern. Also, its high dependence on overseas revenues makes us apprehensive. However, the company is undertaking initiatives to restructure its actively managed equities business with an aim to meet changing client needs. These will further help top-line growth going forward. Further, it has expanded globally via acquisitions and remains well positioned to capitalize on opportunistic deals, given its strong liquidity position.”
BLK has been the subject of several other research reports. Credit Suisse Group reaffirmed an “outperform” rating and set a $534.00 price objective on shares of BlackRock in a report on Tuesday, July 18th. Deutsche Bank AG reissued a “buy” rating and issued a $455.00 price target (down previously from $465.00) on shares of BlackRock in a report on Tuesday, July 18th. Keefe, Bruyette & Woods reaffirmed a “hold” rating and issued a $440.00 price objective on shares of BlackRock in a research note on Friday, July 14th. Morgan Stanley reaffirmed an “overweight” rating and issued a $476.00 price objective (up from $460.00) on shares of BlackRock in a research note on Tuesday, July 18th. Finally, Wells Fargo & Company reaffirmed a “market perform” rating and issued a $425.00 price objective (up from $380.00) on shares of BlackRock in a research note on Wednesday, July 12th. Seven equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $434.93.
Shares of BlackRock (BLK) traded up 0.32% on Wednesday, hitting $428.65. The company’s stock had a trading volume of 440,677 shares. The stock has a market capitalization of $69.53 billion, a P/E ratio of 20.57 and a beta of 1.71. The stock’s 50 day moving average price is $424.10 and its 200 day moving average price is $394.52. BlackRock has a 52 week low of $336.84 and a 52 week high of $442.83.
BlackRock (NYSE:BLK) last released its quarterly earnings results on Monday, July 17th. The asset manager reported $5.24 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $5.39 by $0.15. BlackRock had a net margin of 29.92% and a return on equity of 11.79%. The firm had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $3.01 billion. During the same quarter last year, the company earned $4.78 earnings per share. The firm’s revenue was up 5.7% on a year-over-year basis. On average, analysts forecast that BlackRock will post $21.90 earnings per share for the current fiscal year.
In other BlackRock news, Director Susan Wagner sold 2,500 shares of the firm’s stock in a transaction on Friday, June 2nd. The shares were sold at an average price of $414.31, for a total value of $1,035,775.00. Following the transaction, the director now directly owns 484,386 shares of the company’s stock, valued at $200,685,963.66. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark Mccombe sold 500 shares of the firm’s stock in a transaction on Friday, May 26th. The shares were sold at an average price of $405.98, for a total transaction of $202,990.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 3,522 shares of company stock worth $1,458,798. 1.86% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Financial Architects Inc raised its position in BlackRock by 0.7% in the second quarter. Financial Architects Inc now owns 291 shares of the asset manager’s stock worth $123,000 after buying an additional 2 shares during the period. Alpha Windward LLC raised its position in BlackRock by 0.6% in the first quarter. Alpha Windward LLC now owns 487 shares of the asset manager’s stock worth $187,000 after buying an additional 3 shares during the last quarter. Eqis Capital Management Inc. raised its position in BlackRock by 0.5% in the first quarter. Eqis Capital Management Inc. now owns 609 shares of the asset manager’s stock worth $233,000 after buying an additional 3 shares during the last quarter. National Asset Management Inc. raised its position in BlackRock by 0.4% in the first quarter. National Asset Management Inc. now owns 716 shares of the asset manager’s stock worth $275,000 after buying an additional 3 shares during the last quarter. Finally, JNBA Financial Advisors raised its position in BlackRock by 0.4% in the first quarter. JNBA Financial Advisors now owns 910 shares of the asset manager’s stock worth $349,000 after buying an additional 4 shares during the last quarter. 80.85% of the stock is currently owned by hedge funds and other institutional investors.
BlackRock Company Profile
BlackRock, Inc (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients.
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