BlackRock (BLK) Downgraded to Hold at Zacks Investment Research
BlackRock (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 Tuesday.
According to Zacks, “BlackRock’s shares have outperformed the industry, in the past six months. This performance is supported by impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company is undertaking initiatives to restructure its actively managed equities business with an aim to meet changing client needs. These along with technological changes and its efforts to expand globally via acquisitions will further help top-line growth going forward. However, mounting expenses mainly due to continued rise in marketing costs is likely to hurt the bottom-line growth. Also, high dependence on overseas revenues remains a major concern.”
Other analysts also recently issued research reports about the company. Wells Fargo & Company reissued a “market perform” rating and issued a $475.00 price objective (up previously from $450.00) on shares of BlackRock in a research note on Thursday, October 12th. J P Morgan Chase & Co boosted their price objective on BlackRock to $558.00 and gave the stock an “overweight” rating in a research note on Thursday, October 12th. Credit Suisse Group reissued an “outperform” rating on shares of BlackRock in a research note on Thursday, October 12th. Jefferies Group reissued a “hold” rating and issued a $465.00 price objective on shares of BlackRock in a research note on Thursday, October 12th. Finally, Keefe, Bruyette & Woods reissued a “hold” rating and issued a $500.00 price objective on shares of BlackRock in a research note on Thursday, October 12th. Five investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $489.08.
BlackRock (NYSE:BLK) last released its quarterly earnings data on Wednesday, October 11th. The asset manager reported $5.92 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $5.49 by $0.43. BlackRock had a return on equity of 12.01% and a net margin of 29.52%. The business had revenue of $3.23 billion during the quarter, compared to analyst estimates of $3.10 billion. During the same quarter in the previous year, the firm posted $5.14 EPS. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. sell-side analysts forecast that BlackRock will post 22.29 EPS for the current fiscal year.
In other news, Director Susan Wagner sold 4,000 shares of the business’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $506.10, for a total transaction of $2,024,400.00. Following the sale, the director now directly owns 481,915 shares of the company’s stock, valued at $243,897,181.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark Mccombe sold 1,000 shares of the business’s stock in a transaction on Thursday, October 12th. The stock was sold at an average price of $478.99, for a total value of $478,990.00. The disclosure for this sale can be found here. Insiders have sold 5,200 shares of company stock worth $2,599,302 over the last ninety days. 1.86% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the company. Aperio Group LLC raised its position in BlackRock by 8.6% during the third quarter. Aperio Group LLC now owns 68,737 shares of the asset manager’s stock valued at $30,732,000 after buying an additional 5,451 shares during the period. Everett Harris & Co. CA grew its stake in BlackRock by 9.2% in the second quarter. Everett Harris & Co. CA now owns 100,143 shares of the asset manager’s stock valued at $42,301,000 after purchasing an additional 8,478 shares in the last quarter. Canada Pension Plan Investment Board grew its stake in BlackRock by 48.9% in the second quarter. Canada Pension Plan Investment Board now owns 101,703 shares of the asset manager’s stock valued at $42,960,000 after purchasing an additional 33,400 shares in the last quarter. Honkamp Krueger Financial Services Inc. purchased a new position in BlackRock in the third quarter valued at about $222,000. Finally, Blue Chip Partners Inc. grew its stake in BlackRock by 8.5% in the second quarter. Blue Chip Partners Inc. now owns 13,440 shares of the asset manager’s stock valued at $5,677,000 after purchasing an additional 1,055 shares in the last quarter. 83.75% of the stock is currently owned by institutional investors.
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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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