BlackRock EPS Tops Forecast by $0.61, Dividend Raised to $5.73
Analysts’ consensus Moderate Buy rating on BlackRock comprises 15 Buys and 4 Holds with an average 12-month price target of $1,314.71 and recent BofA and GS raises to $1,464 and $1,313. BlackRock beat Q4 EPS estimates by $0.61 to $13.16 and upped its quarterly dividend to $5.73.
1. Consensus Rating Update
Nineteen research firms currently cover BlackRock, assigning a consensus recommendation of Moderate Buy. Within this group, fifteen analysts rate the stock as Buy and four as Hold. The average 12-month price target among these reports stands at $1,314.71, reflecting expectations for modest upside over the coming year.
2. Financial and Valuation Metrics
BlackRock’s market capitalization is approximately $175.3 billion, supported by a price-to-earnings ratio of 31.9 and a price/earnings-to-growth ratio of 1.43. The firm’s beta is 1.47, indicating moderately higher volatility than the market. On the balance sheet, the quick ratio and current ratio both sit at 3.33, and the debt-to-equity ratio is a conservative 0.34.
3. Recent Quarterly Results and Dividend Increase
In its most recent quarter, BlackRock reported earnings per share of $13.16, surpassing the consensus estimate of $12.55 by 4.9%. Revenue for the period was $6.33 billion, up 23.4% year-over-year but below analyst projections of $6.80 billion. The firm delivered a return on equity of 15.14% and a net profit margin of 22.93%. The board also raised the quarterly dividend to $5.73 per share, representing an annualized payout of $22.92 and a dividend yield of 2.0%, with a payout ratio of 58.84%.
4. Insider Activity and Institutional Ownership
During the past quarter, corporate insiders sold a combined 48,305 shares, totaling approximately $55.5 million in disposals. Director J. Richard Kushel and CFO Martin Small accounted for over 95% of this volume. Despite these sales, insiders still hold 1.98% of outstanding shares. Institutional investors maintain a dominant position, owning roughly 80.7% of the company’s stock, underlining confidence from large asset managers and pension funds.