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Blackrock Stock Tumbles / Director Buys Shares

edited April 24 in Other Investing
“BlackRock stock has tumbled this year, and director William E. Ford, the chairman and CEO of investment firm General Atlantic, scooped up shares of the asset manager on the open market. Ford paid $2.1 million between April 14 and April 18 for a total of 3,000 BlackRock shares at an average price of $688 each ... He now owns 14,915 BlackRock shares. He has been a BlackRock director since 2018. BlackRock (BLK) has fallen 27% year to date, compared with a 9.6% decline for the S&P 500.”

(Excerpted / lightly edited from - Barron’s April 25, 2022)

My research pulled up the following numbers as of end of day Friday:

1 year -18.47%

Last quarter -17.23%

Year to date -27.6%

From 52 week high -31.88%

Comments

  • I might be watching and waiting as I feel there may be more downside to come. Correct me if I'm wrong but don't they own a slug of Russian paper?
  • edited April 24
    Yes:
    "BlackRock Russia exposure down $17 billion since February, company data shows"

    Link to Reuters article

    Perhaps BlackRock director Ford believes that the present share price reflects a decrease well in excess of the obvious Russia writedown. He may believe that it's a good buying opportunity, and that the stock will recover a good part of the excess decrease.
  • edited April 24
    I’ve seen some references to heightened competition / lower fees in the ETF field. Also, to the extent investors think the equity markets will sour (or have soured) they may be anticipating less business for Blackrock from the retail community.

    Have been keeping an eye out for bargains in the financial area. Generally, prices are inflated I think. But the “discount” here is interesting.
  • edited April 24
    "Have been keeping an eye out for bargains in the financial area. Generally, prices are inflated I think. But the “discount” here is interesting."

    I may have moved too soon, buying financials. But I'm not going to bail, so very soon after buying. Financials = 32% of portfolio at the moment. YTD, PRISX is down -7.53%.
  • @old_Joe beat me to it. BlackRock has one of the largest Russian exposure, $17 billion. For now Russia stocks are delisted from the west’s stock exchanges and the securities are mark-to-market as they underwent free fall… Even if the sanction are lifted, it would takes several months to return to normal.
  • edited April 25
    Surprised BlackRock was pimping Russia, given they claim moral authority for ESG. I guess they can only smell AUM.
  • BaluBalu said:

    Surprised BlackRock was pimping Russia, given they claim moral authority for ESG. I guess they can only smell AUM.

    One could make the comment re BLK's exposure to PRC. BLK is a big proponent of ESG -- except when it involves themselves.

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