BlackRock shares close lower on Thursday, quarterly profit tops estimates as AUM rise to a record high

BlackRock Inc’s quarterly profit, reported on Thursday, topped Wall Street estimates, since higher activity in global markets led to higher investment and advisory fees for the company, while its assets under management rose to a record high.

BlackRock shares closed lower for the second time in the past ten trading sessions in New York on Thursday. It has also been the steepest single-session loss since September 3rd 2020. The stock went down 4.65% ($36.25) to $743.50, after touching an intraday low at $742.01, or a price level not seen since January 6th ($718.68).

Shares of BlackRock Inc have risen 3.04% so far in 2021 compared with a 1.05% gain for the benchmark index, S&P 500 (SPX).

In 2020, BlackRock Inc’s stock went up 43.53%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.

Total net inflows were reported at $126.93 billion during the fourth quarter, compared with $128.84 billion in the year-ago period.

BlackRock reported adjusted net income of $10.18 per share during the quarter ended December 31st, which exceeded a consensus of analyst estimates ($9.14 per share).

Meanwhile, assets under management rose to $8.68 trillion at the end of the fourth quarter from $7.43 trillion in the year-ago period.

Higher market volatility during the latest quarter, triggered by the presidential election in the US and the release of several COVID-19 vaccines, lured investors into BlackRock’s exchange-traded funds and active funds that aim to outperform the market.

Analyst stock price forecast and recommendation

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding BlackRock Inc’s stock price, have a median target of $840.00, with a high estimate of $890.00 and a low estimate of $715.00. The median estimate represents a 12.98% upside compared to the closing price of $743.50 on January 14th.

The same media also reported that at least 14 out of 17 surveyed investment analysts had rated BlackRock Inc’s stock as “Buy”, while 2 – as “Hold”.

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