BlackRock (NYSE: BLK) has received an average rating of “Moderate Buy” from twenty brokerages following its recent financial performance. According to MarketBeat, three analysts have recommended holding the stock, while seventeen have suggested buying it. The average twelve-month price target for BlackRock stands at approximately $1,302.59.
Analysts have been actively revising their outlook on BlackRock, particularly after the company disclosed its latest earnings results. On October 14, 2023, BlackRock reported earnings of $11.55 per share (EPS), falling short of analysts’ expectations of $11.78 by $0.23. The firm generated revenue of $6.51 billion during the quarter, surpassing the consensus estimate of $6.22 billion. This marked a 25.2% increase in revenue compared to the same period last year.
Analyst Recommendations and Price Targets
Several prominent financial institutions have adjusted their price targets for BlackRock recently. On October 15, Morgan Stanley raised its target from $1,362.00 to $1,486.00, assigning an “overweight” rating. Argus also increased its target from $1,165.00 to $1,330.00, maintaining a “buy” stance. Meanwhile, UBS Group reiterated a “hold” rating, and JPMorgan Chase & Co. lifted its price objective from $1,093.00 to $1,242.00 with a “neutral” rating.
Additionally, BNP Paribas Exane adjusted its target price from $1,160.00 to $1,265.00, granting an “outperform” rating. The consistent positive revisions reflect confidence in BlackRock’s ongoing performance amid a competitive market.
Dividend Announcement and Insider Activity
In a related development, BlackRock has declared a quarterly dividend of $5.21 per share, set to be paid on December 23, 2023. Investors on record as of December 5 will be eligible for this dividend, which represents an annualized total of $20.84 and a yield of 1.9%. The company’s dividend payout ratio currently stands at 53.59%.
Insider trading activity has also garnered attention. On October 20, Rachel Lord, a director at BlackRock, sold 12,000 shares at an average price of $1,165.04, totaling approximately $13.98 million. This transaction reduced her ownership in the company by 62.48%. Additionally, Martin Small, the Chief Financial Officer, sold 1,258 shares on December 1 for an average price of $1,043.38, valued at around $1.31 million. Following this sale, Small holds 6,209 shares, representing a 16.85% decrease in ownership.
Institutional Investor Movements
Institutional investors have also been active in adjusting their positions regarding BlackRock. Vanguard Group Inc. increased its stake by 1.7% in the second quarter, now owning 13,991,264 shares valued at approximately $14.68 billion. Geode Capital Management LLC boosted its holdings by 1.1%, while Norges Bank acquired a new stake valued at around $2.64 billion.
Moreover, Franklin Resources Inc. raised its stake by 72.5%, now owning 2,005,358 shares worth approximately $2.10 billion. Institutional investors and hedge funds collectively own 80.69% of BlackRock’s stock, reflecting strong institutional confidence in the asset management firm.
BlackRock, Inc. remains a key player in the investment management sector, providing services to a diverse range of institutional, intermediary, and individual investors, including pension funds, insurance companies, and governments. The firm continues to navigate a complex financial landscape while maintaining a strong performance record.
