Stock of the Day

November 23, 2020

BlackRock (BLK)

$974.97
-$14.41 (-1.5%)
Market Cap: $153.23B

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. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

BlackRock Bull Case

Here are some ways that investors could benefit from investing in BlackRock, Inc.:

  • BlackRock, Inc. has received a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment towards the stock's future performance.
  • The stock is currently priced at $987.08, which is significantly below the consensus price target of $1,120.67, suggesting potential for price appreciation.
  • In the latest earnings report, BlackRock, Inc. reported an EPS of $11.93, exceeding analysts' expectations, which reflects strong financial performance and operational efficiency.
  • The company has shown a year-over-year revenue increase of 22.6%, indicating robust growth and a strong market position in the asset management sector.
  • BlackRock, Inc. has a solid return on equity of 16.32%, which demonstrates effective management and profitability relative to shareholder equity.

BlackRock Bear Case

Investors should be bearish about investing in BlackRock, Inc. for these reasons:

  • Insider selling has been significant, with a total of 110,190 shares sold recently, which may indicate a lack of confidence among executives regarding the stock's future performance.
  • The stock has a relatively high price-to-earnings (P/E) ratio of 23.50, which could suggest that it is overvalued compared to its earnings, potentially limiting future price growth.
  • BlackRock, Inc. has a beta of 1.28, indicating that the stock is more volatile than the market, which could pose risks for investors during market downturns.
  • Despite strong revenue growth, the company operates in a competitive environment, which could impact its market share and profitability in the future.
  • Insiders currently own only 0.90% of the stock, which may raise concerns about alignment between management and shareholder interests.

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