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New York-based BlackRock, Inc. (BLK) is the world’s largest asset management firm. It provides various investment and technology services to institutional and retail clients. With a market cap of $134 billion, BlackRock’s operations span various countries in the Americas, Europe, Asia-Pacific, Africa, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," and BlackRock fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and domination in the asset management industry.
On the Aug. 30 trading session, BlackRock hit its 52-week high of $903.46 before slightly pulling back. BLK stock has gained 18.4% over the past three months, outpacing the US Financial Services Ishares ETF’s (IYG) 10.4% gains during the same time frame.
Over the longer term, despite rallying 30.5% over the past 52 weeks and 11.1% in 2024, BLK lagged behind IYG’s 32.9% gains over the past year and 20.1% returns on a YTD basis.
To confirm the bullish trend, BLK has consistently traded above its 200-day moving average since mid-November 2023 and above its 50-day moving average since mid-June.
Following BlackRock's Q2 earnings release on July 15, its shares rose by 2.6% in the subsequent trading session. Its revenue surged 7.7% year over year to $4.8 billion, while net income grew by 9.4% to $1.5 billion. Its adjusted EPS rose by 11.6% annually to $10.36, surpassing the consensus estimates by 4%.
Moreover, the company repurchased shares worth $1.2 billion in the first half of 2024. Additionally, BlackRock has consistently raised its dividend payouts since 2009, exhibiting its commitment to returning value to shareholders.
BlackRock’s competitor, State Street Corporation (STT), gained 27.1% over the past year, lagging behind BLK. However, STT rallied 12.5% on a YTD basis, outpacing BLK’s returns over the same time frame.
Among the 18 analysts covering the BLK stock, the consensus rating is a “Strong Buy.” The mean price target of $928.65 for BLK represents a potential upside of 3% from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
