BLK continues to move closer to its all-time highs
BlackRock, Inc. (NYSE:BLK) is an American multinational investment management corporation and the world's largest asset manager, with $9.5 trillion currently in assets under management. The investment management company operates globally with 70 offices in 30 countries, and clients in 100 countries.
On Tuesday, Dec. 7, BlackRock announced that it has entered into agreements with Bank of New York Mellon, Citigroup, and JPMorgan Chase to join State Street as post-trade service providers for iShares’ $2.3 trillion in U.S.-domiciled exchange-traded funds (ETF). The transition of any U.S. iShares ETF assets to the new providers per this agreement is expected to begin in the second half of 2022 and projected to take approximately 18 months to complete.
BlackRock stock has increased approximately 31% year-over-year and has been chopping higher since hitting its annual low of $607.28 on March 5. The 200-day moving average captured BLK's more dramatic pullback in late-September through early October, while the 160-day moving average provided a floor earlier this month. Moreover, BlackRock offers a forward dividend of $16.52 with a dividend yield of 1.79%.
From a fundamental point of view, BlackRock stock is somewhat overvalued at its market capitalization of $140 billion. Although the investment management company has maintained a consistent top line growth rate, with 16% revenue growth since fiscal 2020 and 50% growth since fiscal 2017, BLK’s price-sales ratio of 7.58 is on the higher end as far as valuations go for non-growth stocks. Additionally, BlackRock stock also trades at a rich price-earnings ratio of 24.49.
However, BLK’s forward price-earnings ratio of 21.60 is more promising given BlackRock’s bottom-line growth rate. The investment management company has increased its net income 18% since fiscal 2020 and 35% since fiscal 2018. Nonetheless, investors may want to wait for BlackRock stock to retreat from its all-time highs before buying, despite the stock's decent long-term outlook.