BlackRock (NYSE:BLK) has received an average recommendation of “Moderate Buy” from twenty brokerages currently covering the firm. According to MarketBeat, three analysts have rated the stock with a hold recommendation, while seventeen have given it a buy recommendation. The average twelve-month price target among these analysts stands at approximately $1,302.59.
Several notable research updates have emerged recently. Morgan Stanley raised its price target for BlackRock from $1,362.00 to $1,486.00, assigning an “overweight” rating on October 15. Similarly, Argus increased its target price from $1,165.00 to $1,330.00, maintaining a “buy” rating. On the other hand, UBS Group reiterated a “hold” rating for the stock on October 21. Earlier, on October 2, JPMorgan Chase & Co. lifted its price objective from $1,093.00 to $1,242.00, giving it a “neutral” rating. BNP Paribas Exane also adjusted its price target from $1,160.00 to $1,265.00, categorizing the stock as “outperform” on October 9.
BlackRock’s Earnings Report and Dividend Announcement
In its latest earnings report released on October 14, BlackRock reported earnings per share (EPS) of $11.55 for the quarter, falling short of analysts’ consensus estimate of $11.78 by $0.23. The asset manager recorded revenue of $6.51 billion, exceeding the consensus estimate of $6.22 billion. BlackRock’s net margin stood 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 last year. Analysts predict BlackRock will post an EPS of 47.41 for the current fiscal year.
In addition to its earnings report, BlackRock announced a quarterly dividend of $5.21 per share, payable on December 23, 2023. Shareholders on record as of December 5 will receive this dividend, representing an annualized amount of $20.84 and a yield of 1.9%. The company’s dividend payout ratio currently stands at 53.59%.
Insider Transactions and Institutional Investment
Recent insider transactions have drawn attention. On October 20, Director Rachel Lord sold 12,000 shares at an average price of $1,165.04, totaling approximately $13,980,480.00. Following this transaction, she retains 7,205 shares valued at around $8,394,113.20, marking a 62.48% decrease in her ownership of the stock. This sale was disclosed in a filing with the SEC.
CFO Martin Small also sold 1,258 shares on December 1 for an average price of $1,043.38, amounting to about $1,312,572.04. After the sale, Small holds 6,209 shares, valued at approximately $6,478,346.42, indicating a 16.85% reduction in his ownership.
Institutional investors continue to show significant interest in BlackRock. Vanguard Group Inc. increased its position by 1.7% in the second quarter, now owning 13,991,264 shares valued at $14.68 billion. Geode Capital Management LLC also boosted its stake by 1.1% to 3,143,429 shares worth $3.28 billion. Norges Bank acquired a new stake valued at approximately $2.64 billion, while Franklin Resources Inc. raised its stake by 72.5%, now holding 2,005,358 shares valued at $2.10 billion. Institutional investors and hedge funds collectively own 80.69% of BlackRock’s stock, reflecting strong confidence in the firm’s future prospects.
BlackRock, Inc. is a publicly traded investment management corporation providing services to a diverse range of clients, including institutional, intermediary, and individual investors across various sectors.
