BlackRock, Inc. (NYSE: $BLK) is the world’s leading asset manager. It oversees over $10 trillion in assets under management (AUM) as of December 31, 2023. On Friday, January 12, 2024, the company released its full-year 2023 financial results.
Earning Reports for FY23
BlackRock reported a diluted earnings per share (EPS) for FY23 of $36.51 or $37.77 adjusted. For Q423, the company reported a diluted EPS of $9.15, or $9.66 adjusted. FY23 diluted EPS grew 7%, while FY23 operating income fell 2%.
BlackRock also reported that the board had approved a 2% increase in quarterly cash dividend to $5.10 per share. The company stated that in FY23, it had returned $4.5 billion to shareholders, which included $1.5 billion in share repurchases.
According to the 2023 financial report, the company grew its AUM after experiencing $289 billion in net inflows. Those inflows included $96 billion in inflows in Q423.
BlackRock reported a flat FY23 revenue, primarily due to the negative impact of markets on the average AUM. However, increased revenue from the technology services segment partially offset the losses.
BlackRock Acquires Private Company: Global Infrastructure Partners (GIP)
In the FY23 financial statement, BlackRock (BLK) announced that it would acquire Global Infrastructure Partners (GIP). According to BlackRock, the GIP acquisition will create a combined infrastructure platform of over $150 billion.
BlackRock revealed it had acquired GIP for $12.5 billion, signaling BlackRock’s belief in the potential of alternative assets. The deal will include a $3 billion cash payment and 12 million BLK shares. Once it closes, the firm will hold around $150 billion in infrastructure assets, including the US liquefied natural gas export market, wastewater services in France, and airports in Australia and England.
GIP was founded in 2006 and manages over $100 billion in assets. Its portfolio includes the Port of Melbourne, Gatwick Airport in Britain, and major offshore wind power projects.
Changes to Management Structure
In the FY23 financial report, Larry Fink, Chairman and CEO of BlackRock, also announced a change to the management structure. The reorganization comes amidst speculation of who will take over from Fink, who founded the company in 1988.
In the new organizational structure, Stephen Cohen was named chief product officer, leading a new global product strategy group. Salim Ramji, the global head of iShares and index investments, will leave the company.
The company has also created a new international business structure headed by Rachel Lord. The international division will oversee operations in India, the Middle East, and the Asia Pacific.
CEO Larry Fink Lauds the Technological Revolution Heralded by Bitcoin ETFs
Recently, the US Securities Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, including one by BlackRock. During an interview on CNBC’s Squawk Box, BlackRock CEO Larry Fink said that Bitcoin ETFs were the first step in a technological revolution.
According to Fink, Bitcoin ETFs have opened the door to tokenizing other asset classes. Asset tokenization of other asset classes has been a hot topic amongst investors. Many financial institutions believe asset tokenization will allow them to provide clients with more data about their investments.
While the investment world is focused on the potential approval of an Ethereum ETF, Fink is more focused on the value of blockchain technology to the financial system. However, Fink believes that there is value in an ETH ETF. He added that it was the first step towards tokenization.
According to Fink, the technology to tokenize already exists. He noted that tokenization of securities would bring about an unprecedented level of transparency. According to Fink, tokenization would eliminate all corruption in the financial system.
BlackRock Stock Performance: $BLK
During early morning trading on January 16, 2024, BLK stock was valued at $793.15 per share. In the past 12 months, BLK stock has gained 5.76% and 8.92% in the past six months. BLK stock is currently valued above its 50-day and 200-day moving averages of $746.72 and $693.14, respectively. The stock has a total market cap of $118.74 billion.
BLK Stock Forecast
Analysts give BLK stock a broad target range with a low of $734 and a high of $1,025. Their median target for the stock is $905, a 14.16% upside. Analysts give BLK stock an average rating of Buy.
Should You Buy BLK Stock?
BlackRock is the world’s leading asset manager, with over $10 trillion in assets under management. Additionally, BLK stock has traditionally been a dividend stock. In its latest FY report, the company announced an increase in dividend payouts to $5.10 per share.
While the past few months have been challenging, the company still reported positive returns. As one of the leading players in the global financial industry, investors in BLK stock are likely assured of steady growth in value and payouts. As a result, the buy rating given by investors accurately represents the stock.
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