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New York-based Blackstone Inc. (BX), a powerhouse in the financial industry, reigns as a global leader in alternative investments. Founded in 1985, the firm boasts a diversified portfolio spanning private equity, real estate, hedge fund solutions, credit, public debt and equity, and multi-asset class strategies. With assets under management exceeding $1 trillion, it drives innovation and growth worldwide. Known for strategic acquisitions and transformative investments, Blackstone continues to shape the future of finance and investment with its robust and forward-thinking approach. Its market cap currently stands at $87.3 billion.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Blackstone perfectly meets the benchmark, reflecting its significant scale, stability, and industry leadership. Blackstone serves institutional and individual investors, fostering strong businesses that deliver enduring value. Its vast scale, encompassing 12,500 real estate assets and 230+ portfolio companies, enables investments in dynamic sectors poised for long-term growth. Diversified investments and a successful track record have propelled Blackstone into the large-cap tier.
However, despite its strengths, Blackstone faces its fair share of challenges and obstacles. BX has slipped 8% from its 52-week high of $133.56, achieved on March 21. Shares of Blackstone dipped marginally over the past three months, trailing behind the S&P 500 Index’s ($SPX) 6.6% gains over the same time frame.
In the longer term, BX stock has gained 34.9% over the past 52 weeks, easily outpacing SPX's 24.4% gains over the same time frame. However, shares of Blackstone plunged 6.1% on a YTD basis compared to SPX’s 15% gains.
BX has maintained a bullish price trend, trading consistently above its 200-day moving average with occasional fluctuations. While it has mostly stayed above the 100-day moving average, BX dipped below it starting in mid-April.
Blackstone's stock performance has been a mixed bag lately, largely due to interest rate uncertainties and economic headwinds. Higher interest rates have taken a toll on alternative investments, with significant redemptions from its Blackstone Real Estate Income Trust (BREIT) investments starting amid market volatility in 2022. However, Blackstone managed to control the situation, and redemption requests have slowed significantly this year. Despite market turbulence, the firm grew its assets under management from $881 million in 2021 to over $1 trillion last year, indicating strong investor demand for alternative investments.
After releasing its Q1 earnings on April 18, Blackstone's stock dipped 2.3%, followed by a 1.6% drop the next trading session. While distributable earnings rose 1% annually, driven by growth in fee-related earnings, this was partly offset by a decline in income from asset divestments. Distributable earnings, crucial for paying dividends, reached $1.27 billion, translating to an EPS of $0.98, aligning with projections. However, net profit from asset sales fell 25% annually to $293.3 million as the firm cashed out fewer assets across its private equity and credit portfolios.
Yet, over the past year, BX stock has outpaced the broader index. Its inclusion in the S&P 500 Index on Sept. 18, replacing Lincoln National Corporation (LNC), further boosted investor confidence, showcasing its resilience and market strength.
To highlight the stock’s mixed performance, Blackstone's rival Brookfield Asset Management Ltd. (BAM) dipped 5.5% on a YTD basis – a milder setback compared to BX’s decline over the same time frame. However, BX stock's double-digit surge over the past 52 weeks outshines BAM’s 14.2% returns over the same time frame.
Given the stock’s mixed price action, analysts remain cautiously optimistic about its prospects. Among the 19 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $127.62 implies an upside potential of 3.8%.
On the date of publication, Sristi Jayaswal 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.
