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Valued at a market cap of $158.4 billion, BlackRock, Inc. (BLK) is a publicly traded investment management firm that offers single- and multi-asset portfolios investing in equities, fixed-income, alternatives, and money market instruments. The New York-based company also offers advisory services, solutions, and technology services, including the investment and risk management technology platform Aladdin(TM), Aladdin Wealth, eFront, and Cachematrix.
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, stability, and influence in the financial sector. The asset management company operates in over 42 countries and 135 languages and has more than 19,000 employees of different backgrounds, races, and nationalities.
Despite a 3.2% decline from its 52-week high of $1068.34 reached on Nov. 11, shares of this investment management company have gained 13.1% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 7.1% return over the same time frame.
In the longer term, BLK has gained 25.7% on a YTD basis, lagging behind SPX’s 26.8% returns. However, shares of BLK are up 34.9% over the past 52 weeks, outpacing SPX’s 31.6% gains over the same time frame.
To confirm its bullish trend, BLK has been trading above its 200-day moving average for the past year and has remained above its 50-day moving average since mid-June.
BLK’s outperformance over the past year can be primarily attributed to its robust financial performance, strong AUM growth, and effective strategic initiatives, including various collaborations, mergers, and acquisitions, which have resonated well with the investors.
On Oct. 11, BLK shares gained 3.6% after its robust Q3 earnings release. The company’s adjusted earnings increased 5% year-over-year to $11.46, and its revenues grew 15% annually to $5.03 billion. BLK benefited from improved organic base fees and higher performance fees.
Moreover, BLK has outpaced its rival, T. Rowe Price Group, Inc. (TROW), which has gained 14.8% on a YTD basis and 20.7% over the past 52 weeks.
As BLK outperformed the broader market recently, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 18 analysts covering it, and the mean price target of $1,097.70 suggests a 7.6% premium to its current levels.
