A BlackRock Board Member Bought $100,000 in Stock

Page 1 of 2

BlackRock, Inc. (NYSE:BLK) Board member John Varley has purchased 427 shares of the company’s stock at an average price of $233.59 per share, bringing his direct ownership of BlackRock stock to over 1,000 shares. Insider purchases are bullish signs (see our analysis of studies on insider trading), and we think that this is because insiders will tend to buy only when they are confident in the company’s prospects; if they are neutral, or even slightly positive, they will instead prefer to diversify their investments. Another Board member was aggressively buying BlackRock in October, when the stock was trading at about $190 (find more insider buys at BlackRock).

The $40 billion market cap asset manager reported good results for Q4 2012 last week. Assets under management swelled 8% from the beginning of the year, to a total of $3.8 trillion. BlackRock, Inc. also improved its ratio of revenue to AUM (with revenue increasing 14%) and its operating margins (as operating income grew 24%). With net income up by about as much as operating income, and share count actually decreasing, the company had $3.93 in earnings per share for the fourth quarter. This was up from $3.05 in the fourth quarter of 2011 and up from $3.65 in the previous quarter of 2012. For the year as a whole, BlackRock earned $13.79 per share and as a result its current price is 17 times trailing earnings.

Wall Street analysts believe that the asset manager will experience continued earnings growth. Consensus is for BlackRock, Inc. to earn $15.47 in 2013 and $17.40 in 2014, chopping the P/E multiple down to 14 by the end of the forward year. There would then presumably be more improvement on the bottom line, as that P/E generally indicates expectations of at least modest earnings growth.

CITADEL INVESTMENT GROUP

Billionaire Ken Griffin’s Citadel Investment Group increased its stake in BlackRock during the third quarter of 2012 to a total of about 370,000 shares (check out Griffin’s stock picks). Legg Mason Capital Management, managed by Bill Miller, owned about 550,000 shares at the end of September (see more stocks Legg Mason owned). The largest holder of the stock in our database of 13F filings from hedge funds and other notable investors was Highfields Capital Management; that fund, managed by Harvard Management alum Jonathan Jacobson, increased the size of its position by 12% during the quarter to report a position of almost 700,000 shares (research more stocks Jacobson likes).

Two other asset managers look slightly cheaper than BlackRock:

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!