BlackRock (NYSE:BLK) Trading Down 1.8% – Here’s Why

BlackRock, Inc. (NYSE:BLK)’s stock price dropped 1.8% on Wednesday . The stock traded as low as $967.18 and last traded at $970.07. Approximately 99,997 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 792,560 shares. The stock had previously closed at $988.20.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on BLK. JPMorgan Chase & Co. raised their price target on shares of BlackRock from $914.00 to $971.00 and gave the company a “neutral” rating in a research note on Tuesday, January 14th. Barclays lowered their target price on BlackRock from $1,220.00 to $1,160.00 and set an “overweight” rating for the company in a research report on Monday, January 13th. Wells Fargo & Company upped their price target on BlackRock from $1,155.00 to $1,175.00 and gave the company an “overweight” rating in a research report on Thursday, January 16th. Deutsche Bank Aktiengesellschaft raised their price objective on BlackRock from $1,215.00 to $1,275.00 and gave the stock a “buy” rating in a research report on Thursday, January 16th. Finally, Evercore ISI upped their target price on BlackRock from $1,040.00 to $1,160.00 and gave the company an “outperform” rating in a report on Thursday, November 7th. Three analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,120.67.

BlackRock Stock Down 1.8 %

The company has a market cap of $150.33 billion, a price-to-earnings ratio of 23.11, a P/E/G ratio of 1.93 and a beta of 1.28. The stock’s 50-day moving average is $1,023.22 and its 200-day moving average is $971.96. The company has a current ratio of 5.23, a quick ratio of 5.23 and a debt-to-equity ratio of 0.45.

BlackRock (NYSE:BLK) last issued its earnings results on Wednesday, January 15th. The asset manager reported $11.93 earnings per share for the quarter, topping analysts’ consensus estimates of $11.52 by $0.41. The company had revenue of $5.68 billion for the quarter, compared to analyst estimates of $5.57 billion. BlackRock had a return on equity of 16.32% and a net margin of 31.21%. BlackRock’s revenue for the quarter was up 22.6% on a year-over-year basis. During the same period in the prior year, the firm earned $9.66 earnings per share. On average, analysts anticipate that BlackRock, Inc. will post 47.44 earnings per share for the current fiscal year.

BlackRock Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 24th. Stockholders of record on Friday, March 7th will be issued a $5.21 dividend. This represents a $20.84 dividend on an annualized basis and a dividend yield of 2.15%. The ex-dividend date is Friday, March 7th. This is a positive change from BlackRock’s previous quarterly dividend of $5.10. BlackRock’s dividend payout ratio (DPR) is currently 48.57%.

Insiders Place Their Bets

In related news, Director J. Richard Kushel sold 10,000 shares of the business’s stock in a transaction dated Thursday, January 30th. The shares were sold at an average price of $1,072.64, for a total value of $10,726,400.00. Following the transaction, the director now directly owns 68,433 shares of the company’s stock, valued at approximately $73,403,973.12. The trade was a 12.75 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mark Wiedman sold 36,190 shares of BlackRock stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $1,045.90, for a total transaction of $37,851,121.00. Following the completion of the sale, the director now directly owns 6,480 shares in the company, valued at approximately $6,777,432. This represents a 84.81 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 110,190 shares of company stock valued at $115,163,141 in the last three months. 0.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On BlackRock

Several institutional investors and hedge funds have recently bought and sold shares of the company. IAG Wealth Partners LLC purchased a new stake in BlackRock in the 4th quarter worth about $26,000. FSA Wealth Management LLC bought a new stake in shares of BlackRock in the third quarter valued at approximately $26,000. Collier Financial bought a new position in BlackRock in the 4th quarter worth approximately $32,000. Compass Planning Associates Inc purchased a new position in BlackRock in the 4th quarter valued at approximately $33,000. Finally, Atwood & Palmer Inc. bought a new stake in BlackRock during the 4th quarter valued at $36,000. 80.69% of the stock is owned by institutional investors.

About BlackRock

BlackRock, Inc is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks.