Stock of the Day

October 22, 2024

Blackstone (BX)

$158.21
-$5.69 (-3.5%)
Market Cap: $118.34B

About Blackstone

Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Blackstone Bull Case

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

  • Blackstone Inc. recently reported earnings per share of $1.69, exceeding analysts' expectations of $1.50, indicating strong financial performance and effective management.
  • The company has increased its quarterly dividend to $1.44 per share, up from $0.86, reflecting a commitment to returning value to shareholders and a healthy cash flow.
  • With a current stock price of $166.59, Blackstone Inc. is positioned within a 52-week range of $115.82 to $200.96, suggesting potential for growth as it approaches its high.
  • Analysts have a consensus target price of $172.38, indicating that there is room for appreciation in the stock price based on current valuations.
  • Blackstone Inc. has a strong return on equity of 19.58%, which demonstrates effective use of equity capital to generate profits, making it an attractive investment for those seeking solid returns.

Blackstone Bear Case

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

  • The company's payout ratio is currently at 158.68%, which indicates that it is paying out more in dividends than it is earning, raising concerns about sustainability.
  • Blackstone Inc. has a high price-to-earnings (P/E) ratio of 45.89, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Recent price target adjustments by analysts, including a reduction from $195.00 to $180.00 by Wells Fargo, may signal a lack of confidence in the stock's near-term performance.
  • The stock has a beta of 1.53, indicating higher volatility compared to the market, which could lead to greater risk for investors during market fluctuations.
  • Thirteen analysts have rated the stock with a hold rating, suggesting that many believe it may not be the best time to invest, reflecting cautious sentiment in the market.

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