BlackRock Stock Gains 20.6% in Three Months: Should You Buy It Now?

Core Viewpoint - BlackRock, Inc. has demonstrated strong stock performance with a 20.6% increase over the past three months, outperforming major indices and peers, supported by strategic acquisitions and product diversification efforts [1][11]. Group 1: Stock Performance - BlackRock's shares have risen 20.6% in the last three months, outperforming the S&P 500 index and the Zacks Finance sector [1]. - The stock has outperformed SEI Investments but underperformed Invesco Ltd. [1]. Group 2: Strategic Acquisitions - BlackRock has been expanding its market presence through strategic acquisitions, including the buyout of HPS Investment Partners and ElmTree Funds, enhancing its private market offerings [6][8]. - The acquisition of Preqin for approximately $3.2 billion in March 2025 and Global Infrastructure Partners in October 2024 further solidifies its infrastructure capabilities [7][8]. - The company has also acquired Kreos Capital in 2023, reflecting a consistent strategy of strengthening its market share through acquisitions [8]. Group 3: Assets Under Management (AUM) - BlackRock's total AUM reached a record $12.52 trillion as of June 30, 2025, with a five-year compound annual growth rate (CAGR) of 9.2% [10]. - The company experienced net inflows of $152 billion in the first half of 2025 and $641 billion in the previous year, driven by its strong ETF operations [10][11]. - The focus on diversifying its product suite is expected to bolster revenue and reduce concentration risk, aiding AUM growth [13]. Group 4: Financial Performance and Capital Distributions - BlackRock announced a 2% increase in its quarterly dividend to $5.21 per share, with a history of five dividend increases over the past five years [16]. - The company has a 45% dividend payout ratio, which is competitive compared to its peers [16]. - In the first half of 2025, BlackRock repurchased $750 million worth of shares and plans to continue with at least $375 million in quarterly repurchases [19]. Group 5: Analyst Sentiments and Valuation - The Zacks Consensus Estimate for BlackRock's earnings in 2025 and 2026 has been revised upward to $47.35 and $51.91, indicating expected growth of 8.6% and 9.6% respectively [20][22]. - BlackRock's price-to-book ratio of 3.57X is lower than the industry average of 3.92X, suggesting the stock is trading at a discount [23][28]. - The company's return on equity (ROE) stands at 15.83%, outperforming the industry average of 10.60% [28].