Larry Fink and BlackRock, the world’s largest asset manager and ETF provider, needs no introduction, but how did this financial giant manage the coronavirus pandemic downturn? Well, judging by the second-quarter earnings released in July, the asset manager is flying to new heights.
Click logo to view BlackRock Inc. (BLK) shares.
on EasyEquities
Fundamentals and Outlook
The investment manager’s Q2 earnings impressed on all fronts with second-quarter adjusted earnings per share (EPS) of $7.85, which beat expectations of $6.90 per share. BlackRock’s assets under management increased 7% Y/Y with Revenue up 3.7% from a year ago. For the third quarter, analysts are expecting another year over year beat in earnings.
BlackRock Inc. (BLK) share overview:
- Sector: Financials
- Market Cap of $91.65 billion.
- Dividend Yield: 2.44 %
- Price/Earnings (LTM): 21.2x
- Price/Book: 2.8x
- Next Earnings: 15th of October 2020.
- 52 Week Range low of $327.42 and $601.06 per share high.
BlackRock Inc. (BLK) declared a $3.63 per share quarterly dividend, which is going ex-dividend on the 3rd of September 2020 and the scheduled dividend payment date is the 22nd of September 2020. For more details on other company’s dividends, head on over to the Nasdaq Dividend Calendar.
Outlook - Exchange Traded Funds (ETFs) are the fastest-growing segment in the asset management industry, and BlackRock holds around 40% of the ETF market. With the ETF market expected to increase to approximately $50 trillion over the next decade, BlackRock should be in an advantageous position.
The asset manager is also building on its global footprint with the latest regulatory approval to become the first asset manager to set up a mutual fund in China. This will open China’s approximate $2.6 trillion asset management sector to BlackRock.
Chart Life
The price action has gained over 80% since the March low and continues its uptrend towards the $675 per share level. We might see a short term pullback to the $566.71 breakout zone which could act as support to price and another buy opportunity.
The solid red line on the visible on the chart is the current price target and analyst expectations on BlackRock Inc. (BLK) at $641.24 per share.
Informed decisions
BlackRock has handled the COVID-19 downturn remarkably well and is poised to grow and reach new all-time highs very soon. The investment manager offers conservative investors steady returns and generous, reliable dividend pay-outs which has come in handy during the pandemic.
For those investors who prefer Exchange Traded Funds (ETFs), It’s iShares offering also gives investors a wide range of offerings to diversify the investor's portfolio.
Portfolio particulars
- Portfolio Hold (Current)*
- Portfolio Buy opportunity: above $577.00 per share**
- WhatsTheBeef long term target price: $675.00 per share.
Know your company:BlackRock Inc. (BLK)
- Founded in 1988, initially as risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager.
- BlackRock has over $7,43 trillion assets under management as of the end of 2019.
- BlackRock's iShares are the largest Exchange Traded Fund (ETF) issuer in the world followed by Vanguard and State Street Global Advisors' SPDR ETFs.
Click logo to view BlackRock Inc. (BLK) shares.
on EasyEquities
Source – EasyResearch, BlackRock, Seeking Alpha, The Motley Fool, Reuters, Investopedia, Wikipedia, Koyfin.
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.
**Portfolio Buy opportunity refers to Technical level crossed, which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level
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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
