The Blackrock stock price has done well this year as it jumped by 75% from its lowest level in January. It recently jumped to a record high of $1,067, pushing its market cap to over $158 billion.
Blackrock is going through big changes
This year is turning into Blackrock’s biggest year since 2009 when it acquired iShares from Barclays. That acquisition has made it the biggest asset manager in the world with over $11 trillion in assets.
2024 is an equally important year because of the company’s acquisitions and impact. Blackrock started the year by acquiring Global Infrastructure Partners (GIP) in a deal that was valued at about $15 billion.
This acquisition gave it access to some key assets like the London City Airpot, Edinburg Airport, and the Port of Melbourne. Notably, it gave Blackrock a big role in the fast-growing industry of infrastructural investments.
Blackrock then acquired Prequin, a London-based company that provides data to hedge funds, private equity companies, placement agents, and banks. This acquisition gives it more visibility in the world of alternative asset managers.
Most importantly, Blackrock is now buying HPS Investment Partners in a deal valued at over $12 billion. That deal, which could be announced this week, will have a major impact because it will bring Blackrock’s alternative assets to $500 billion.
That will make it the fifth-biggest alternative manager after Blackstone, KKR, Apollo Global, and Brookfield Asset Management.
HPS is seen as a top player in the alternative investment because of its specialty in the private credit industry that has grown substantially in the past few years. It manages about $123 billion and $22 billion in private credit.
Blackrock’s business is doing well
These acquisitions will help to supercharge Blackrock’s business trajectory that is doing significantly well. A good example of this is in the crypto industry, where the company has become the biggest provider of ETFs.
Data shows that the iShares Bitcoin Trust (IBIT) has accumulated over $48 billion in assets. Its iShares Ethereum Trust (ETHE) has gained over $5.3 billion in assets this year. These trends are expected to continue doing well this year as demand from institutional investors rise.
Another notable asset in Blackrock’s business is the iShares S&P 500 ETF (IVV), which has attracted over $56 billion in inflows this year. This growth has brought its total assets under management to over $577 billion, meaning that it will pass the popular SPDR S&P 500 ETF (SPY), which has over $627 billion in assets.
This growth has also translated to its financial results. The most recent financial results showed that Blackrock had over $360 billion in net inflows, bringing its total assets under management to over $11.5 trillion.
These are substantial sums that are equivalent to about 46% of the US GDP. Blackrock benefits from higher assets because it makes its money through fees.
Blackrock’s financials showed that its revenue and margins are growing, helped by its scale and assets. Total revenue rose to over $5.19 billion, while its net income jumped to $1.63 billion.
Analysts are optimistic on BLK stock
Analysts are optimistic that Blackrock’s business will continue doing well. The estimate is that its revenue will rise by about 14% to over $20.7 billion. This revenue will jump by 15.1% to $23.4 billion.
The same growth trajectory is expected in the coming years. Analysts expect that the earnings per share will be $43.22 this year, followed by $48.3 in the next financial year. There are odds that Blackrock’s business will do better than estimates as it has done in the past few years.
Most analysts are bullish on the Blackrock stock price. The average stock target is $1,088, which is much higher than the current $1,022. Some of the most bullish analysts are from Deutsche Bank, Evercore ISI, Barclays, and Morgan Stanley.
Blackrock is also a future dividend aristocrat that has raised dividends in the last 14 years. It has a low payout ratio of 49.16% and a yield of 2%.
Blackrock stock price analysis
The weekly chart shows that the BLK share price has been in a strong bullish trend in the past few months. It has formed a cup and handle pattern, a popular bullish sign. By measuring the distance between the upper side and the lower side of the cup, we estimate that the stock will rise to $1,356, which is about 32% above the current level.
Blackrock share price has remained above the 50-week and 100-week moving averages. Also, the Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it has a bullish momentum.
The alternative scenario, which is also possible is a situation where the stock drops and retests $900 and then resumes the bullish trend. This pattern is known as a break and retest pattern and is one of the most bullish signs.
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