TD Cowen Lowers Blackstone Price Target Amid Market Adjustments

Investment firm TD Cowen has lowered its price target for Blackstone Inc. (NYSE: BX) from $205.00 to $183.00 in a report released on October 25, 2023. The firm maintains a “buy” rating on the asset manager’s stock, signaling confidence in the company’s long-term potential despite the adjustment.

Analysts from various firms have also been reevaluating their positions on Blackstone. On October 24, UBS Group reduced its price target from $175.00 to $172.00, assigning a “neutral” rating. Similarly, JMP Securities retained a “market outperform” rating with a target of $195.00. Another report from Evercore ISI on October 22 noted a decrease in their target from $197.00 to $180.00, while also affirming an “outperform” rating. Additionally, Goldman Sachs Group slightly increased their target from $173.00 to $174.00 with a “neutral” rating, and Citigroup lowered its objective from $185.00 to $170.00, maintaining a “neutral” stance.

As it stands, ten equity research analysts have issued a “buy” rating for Blackstone’s stock, while eleven have provided a “hold” rating. Data from MarketBeat.com indicates a consensus rating of “hold” with an average target price of $177.25.

Recent Earnings and Dividend Announcement

Blackstone released its quarterly earnings data on October 23, 2023, reporting earnings per share (EPS) of $1.52, surpassing the consensus estimate of $1.23 by $0.29. The firm generated revenue of $3.09 billion for the quarter, slightly below analyst estimates of $3.14 billion. The company experienced a return on equity of 22.30% and a net margin of 20.56%, although revenue decreased by 15.7% compared to the same period last year. In the previous year’s quarter, Blackstone recorded an EPS of $1.02 and analysts anticipate an EPS of 5.87 for the current fiscal year.

In conjunction with its earnings report, Blackstone declared a quarterly dividend of $1.29 per share, payable on November 10, 2023. This marks an increase from the previous dividend of $1.03 per share, representing an annualized dividend of $5.16 and a yield of 3.2%. The dividend payout ratio stands at 147.43%.

Insider Activity and Institutional Shareholding

Recent insider transactions have also attracted attention. On November 4, James Breyer, a director at Blackstone, acquired 13,900 shares of the company at an average price of $143.86 per share, totaling nearly $2 million. This purchase increased his holdings to 68,906 shares, valued at approximately $9.91 million. Another director, Ruth Porat, purchased 324 shares on November 10 for a total of $47,602.08, raising her ownership to 39,077 shares.

Over the past 90 days, insiders have acquired a total of 797,148 shares worth $24.05 million. Currently, corporate insiders hold 1.00% of Blackstone’s stock.

A number of hedge funds have also adjusted their positions in Blackstone recently. Arcus Capital Partners LLC increased its stake by 1.2% in the second quarter, now owning 4,937 shares valued at $739,000. Mattern Wealth Management LLC raised its holdings by 2.8%, acquiring an additional 60 shares during the same period. Other funds, including GHP Investment Advisors Inc. and Sage Rhino Capital LLC, have also increased their positions.

Overall, institutional investors and hedge funds control 70.00% of Blackstone’s stock, indicating significant confidence in the asset management firm’s prospects.

Founded in 1985 and headquartered in New York City, Blackstone Inc. is a global investment firm specializing in alternative asset management. The company focuses on a range of investments, including private equity, real estate, and credit, catering to both institutional and individual investors.