BlackRock Stock Wipes Out Gains on Heavy Outflow and Acquisition Charges
July 16 - BlackRock 
BLK shares plunged about 5% after the world's largest asset manager detailed mixed second?quarter results.
The firm reported record assets under management of $12.5 trillion and adjusted earnings per share of $12.05, up 16% year?over?year. Revenue climbed 13% to $5.42 billion, buoyed by inflows into iShares ETFs, private markets and cash strategies.
Despite the headline gains, GAAP operating income fell 4% to $1.73 billion due to acquisition?related charges from its recent Preqin and Global Infrastructure Partners deals. A single institutional client's $52 billion redemption cut net quarterly inflows to $68 billion; without that outflow, inflows would have been the strongest in nearly two years.
Expenses rose meaningfully, with compensation and benefits up $261 million and a $39 million restructuring charge linked to internal reorganisation. GAAP operating margin narrowed to 31.9% from 37.5% a year earlier, underscoring margin pressure.
Chief Executive Larry Fink highlighted growing demand across ETFs, alternatives and the Aladdin technology platform. He noted that the HPS Investment Partners acquisition added $165 billion in AUM. While BlackRock did not provide formal guidance, management said the second half of the year is typically stronger, though near?term volatility may persist.
Is BLK Stock a Buy Now?
Based on the one year price targets offered by 15 analysts, the average target price for BlackRock Inc is $1168.16 with a high estimate of $1260.00 and a low estimate of $980.00. The average target implies a upside of +11.66% from the current price of $1046.16.
Based on GuruFocus estimates, the estimated GF Value for BlackRock Inc in one year is $972.02, suggesting a downside of -7.09% from the current price of $1046.16.