Investing

Morgan Stanley Maintains BlackRock Overweight Recommendation

George Maybach

Published: July 18, 2023 10:21 pm

Last Updated: July 19, 2023 11:22 am

Fintel reports that on July 18, 2023, Morgan Stanley maintained coverage of Blackrock (NYSE:BLK) with a Overweight recommendation.

Analyst Price Forecast Suggests 6.49% Upside

As of July 6, 2023, the average one-year price target for Blackrock is 775.13. The forecasts range from a low of 547.42 to a high of $966.00. The average price target represents an increase of 6.49% from its latest reported closing price of 727.87.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Blackrock is 18,191MM, an increase of 4.44%. The projected annual non-GAAP EPS is 34.49.

Blackrock Declares $5.00 Dividend

On May 24, 2023 the company declared a regular quarterly dividend of $5.00 per share ($20.00 annualized). Shareholders of record as of June 8, 2023 received the payment on June 23, 2023. Previously, the company paid $5.00 per share.

At the current share price of $727.87 / share, the stock’s dividend yield is 2.75%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.65%, the lowest has been 1.70%, and the highest has been 4.43%. The standard deviation of yields is 0.48 (n=236).

The current dividend yield is 0.20 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.61. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.38%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2736 funds or institutions reporting positions in Blackrock. This is an increase of 27 owner(s) or 1.00% in the last quarter. Average portfolio weight of all funds dedicated to BLK is 0.46%, an increase of 6.13%. Total shares owned by institutions increased in the last three months by 29.09% to 175,303K shares. The put/call ratio of BLK is 1.00, indicating a bearish outlook.

What are Other Shareholders Doing?

Ofi Invest Asset Management holds 44,149K shares representing 29.48% ownership of the company.

Temasek Holdings holds 5,093K shares representing 3.40% ownership of the company. No change in the last quarter.

Bank Of America holds 4,955K shares representing 3.31% ownership of the company. In it’s prior filing, the firm reported owning 5,184K shares, representing a decrease of 4.63%. The firm decreased its portfolio allocation in BLK by 18.62% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,177K shares representing 2.79% ownership of the company. In it’s prior filing, the firm reported owning 4,338K shares, representing a decrease of 3.87%. The firm decreased its portfolio allocation in BLK by 16.06% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 3,494K shares representing 2.33% ownership of the company. In it’s prior filing, the firm reported owning 3,472K shares, representing an increase of 0.64%. The firm decreased its portfolio allocation in BLK by 11.87% over the last quarter.

Blackrock Background Information
(This description is provided by the company.)

BlackRock’s purpose is to help more and more people experience financial well-being. 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 September 30, 2020, the firm managed approximately $7.81 trillion in assets on behalf of investors worldwide.

This article originally appeared on Fintel