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Category: Stock Market and BlackRock (BLK)
Date: 13 October 2020 Stock Price of BlackRock (BLK): $614.89 We take a look at the 3rd quarter earnings report of their 2020 fiscal year of BlackRock the fiduciary firm that has approximately $7.80 trillion in assets under management on behalf of clients across the world. The group saw massive net inflows of $128.7 billion during the 3rd quarter of 2020
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About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of December 31, 2019, the firm managed approximately $7.429 trillion in assets on behalf of investors worldwide
Overview of BlackRock's 3rd quarter 2020 earnings report
Data below is reported for the latest quarter unless stated otherwise
- Revenue: $4.369 billion (up from $3.692 billion for the same quarter of the previous year)
- Revenue increased by 18.3% over the last 12 months
- Total expenses: $2.612 billion (up from $2.190 billion for the same quarter of the previous year)
- Total expenses increased by 19.3% over the last 12 months
- Some margin squeeze as revenue increased at a lot lower rate than their expenses
- Net income: $1.364 billion (up from 1.119 billion for the same quarter of the previous year)
- Diluted earnings per share: $8.87 (down from $7.15 for the same quarter of the previous year)
- PE ratio of BlackRock: 21.1
- Dividend declared for quarter: $3.63 (up from $3.30 for the same quarter of the previous year)
- Dividend yield of BlackRock: 2.36%
- Diluted weighted-average shares outstanding: 153.74 million (down from 155.173 million for the same quarter of the previous year)
- Average Assets under management by BlackRock: $7.808 trillion (up from $6.963 trillion for the same quarter of the previous year)
- Total net inflows for the quarter: $128.7 billion
BlackRock's management commentary on their 3rd quarter 2020 earnings report
New York, October 13, 2020 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and nine months ended September 30, 2020.
Laurence D. Fink, Chairman and CEO: “As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients’ needs with global insights, strategic advice and whole-portfolio solutions. We purposefully built the most comprehensive, fully-integrated, investment and risk management technology platform in the industry to deepen partnerships with clients as we help them achieve their longterm goals. “BlackRock generated $129 billion of total net inflows in the third quarter, representing 9% annualized organic base fee growth. Our diverse platform saw inflows across all asset classes, investment styles and regions. Notably, more than 50% of longterm flows were driven by clients in Europe and Asia. “Our results are a validation of our globally integrated asset management and technology business model, which allows us to consistently invest and evolve ahead of client needs. Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year. And as clients look to integrate ESG into their portfolios, BlackRock is uniquely positioned with industry-leading sustainability research, investment strategies and technology. “We are humbled by the trust our clients place in us, grateful for the dedication of our employees and committed to operating at the highest standards for all of our stakeholders.”
- $129 billion of quarterly total net inflows, led by continued momentum in fixed income and cash management, with positive flows across all regions, investment styles and product types
- 7% annualized organic asset growth in the quarter and higher organic base fee growth reflect strength of diversified investment management platform, especially active equities, illiquid alternatives and strategic focus areas of iShares®
- 18% increase in revenue year-over-year reflects higher performance fees and continued organic growth
- 17% increase in operating income year-over-year includes the impact of $83 million of product launch costs in the current quarter
- 24% increase in diluted EPS (29% as adjusted) also reflects higher year-over-year nonoperating income and a lower diluted share count in the current quarter
Laurence D. Fink, Chairman and CEO: “As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients’ needs with global insights, strategic advice and whole-portfolio solutions. We purposefully built the most comprehensive, fully-integrated, investment and risk management technology platform in the industry to deepen partnerships with clients as we help them achieve their longterm goals. “BlackRock generated $129 billion of total net inflows in the third quarter, representing 9% annualized organic base fee growth. Our diverse platform saw inflows across all asset classes, investment styles and regions. Notably, more than 50% of longterm flows were driven by clients in Europe and Asia. “Our results are a validation of our globally integrated asset management and technology business model, which allows us to consistently invest and evolve ahead of client needs. Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year. And as clients look to integrate ESG into their portfolios, BlackRock is uniquely positioned with industry-leading sustainability research, investment strategies and technology. “We are humbled by the trust our clients place in us, grateful for the dedication of our employees and committed to operating at the highest standards for all of our stakeholders.”
Revenue by product or service type for BlackRock for the 3rd quarter of 2020: (in millions of US Dollars ($))
- Investment advisory, administration fees and securities lending revenue: 3,222
- Investment advisory performance fees: 532
- Technology services revenue: 282
- Distribution fees: 288
- Advisory and other revenue: 42
- Total Revenue of BlackRock: 4.369
BlackRock (NYSE: BLK) stock price history
The image below, obtained from Google, shows the stock price history of BlackRock over the last 5 years. And it's been a very good time for BlackRock stockholders. 5 years ago it was trading at $365 and its currently trading at around $458.99 a stock. That's a return of 25.7% provided to BlackRock stockholders over the last 5 years.
The stock of BlackRock is trading at close to the midpoint between its 52 week high and its 52 week low, which to us is a clear sign that the short term sentiment and momentum of BlackRock's stock is neutral at this point in time. This is not necessarily a bad thing as the sentiment of most listed stocks has been very negative in recent times due to the market sell offs we have seen triggered by the Coronavirus epidemic. Read more about the market sell off here.
The stock of BlackRock is trading at close to the midpoint between its 52 week high and its 52 week low, which to us is a clear sign that the short term sentiment and momentum of BlackRock's stock is neutral at this point in time. This is not necessarily a bad thing as the sentiment of most listed stocks has been very negative in recent times due to the market sell offs we have seen triggered by the Coronavirus epidemic. Read more about the market sell off here.
BlackRock (BLK) stock vs Citigroup (C) vs JPMorgan Chase (JPM) over the last 5 years
Recent coverage of BlackRock (BLK)
The extract below discusses the latest regarding BlackRock as obtained from InvestorObserver
Monday, October 12, 2020 10:55 AM | InvestorsObserver Analysts
Overall market sentiment has been high on BlackRock, Inc. (BLK) stock lately. BLK receives a Bullish rating from InvestorsObserver's Stock Sentiment Indicator. BlackRock, Inc. has a Bullish sentiment reading. Find out what this means for you and get the rest of the rankings on BLK!
What is Stock Sentiment?
When making investment decisions, sentiment gives a good overview of what stocks investors currently favor. Sentiment incorporates short-term technical analysis into its score and does not encompass any fundamental analysis such as profitability of the company. This means that earnings updates and other news can greatly impact overall sentiment. Sentiment is how investors, or the market, feels about a stock. There are lots of ways to measure sentiment. At the core, sentiment is pretty easy to understand. If a stock is going up, investors must be bullish, while if it is going down, sentiment is bearish.
InvestorsObserver’s Sentiment Indicator looks at price trends over the past week and also considers changes in volume. Increasing volume can mean a trend is getting stronger, while decreasing volume can mean a trend is nearing a conclusion. For stocks that have options, our system also considers the balance between calls, which are often bets that the price will go up, and puts, which are frequently bets that the price will fall.
Read the full article here
Monday, October 12, 2020 10:55 AM | InvestorsObserver Analysts
Overall market sentiment has been high on BlackRock, Inc. (BLK) stock lately. BLK receives a Bullish rating from InvestorsObserver's Stock Sentiment Indicator. BlackRock, Inc. has a Bullish sentiment reading. Find out what this means for you and get the rest of the rankings on BLK!
What is Stock Sentiment?
When making investment decisions, sentiment gives a good overview of what stocks investors currently favor. Sentiment incorporates short-term technical analysis into its score and does not encompass any fundamental analysis such as profitability of the company. This means that earnings updates and other news can greatly impact overall sentiment. Sentiment is how investors, or the market, feels about a stock. There are lots of ways to measure sentiment. At the core, sentiment is pretty easy to understand. If a stock is going up, investors must be bullish, while if it is going down, sentiment is bearish.
InvestorsObserver’s Sentiment Indicator looks at price trends over the past week and also considers changes in volume. Increasing volume can mean a trend is getting stronger, while decreasing volume can mean a trend is nearing a conclusion. For stocks that have options, our system also considers the balance between calls, which are often bets that the price will go up, and puts, which are frequently bets that the price will fall.
Read the full article here
BlackRock (NYSE: BLK) latest stock valuation
So what is BlackRock stock worth based on the release of their latest earnings report? Based on BlackRock's latest earnings report provided our valuation model provides a target (full value) price at $485.00 a BlackRock stock (down slightly from our last earnings report valuation of BlackRock). We therefore believe that the stock of BlackRock is overvalued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $485.00. Therefore we see a good entry point into BlackRock's stock at $436.50 or below. We expect the stock of BlackRock to pull back in coming weeks and months to levels closer to our target price (full value price)
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target (full value) price which in this case is $485.00. Therefore we see a good entry point into BlackRock's stock at $436.50 or below. We expect the stock of BlackRock to pull back in coming weeks and months to levels closer to our target price (full value price)
Next earnings release of BlackRock
It is expected that BlackRock will release their 4th quarter 2020 earnings report in January 2021