Blackstone’s Financial Performance and Market Position Under Review

Blackstone Inc. (BX), based in New York, stands as a prominent alternative fund manager, focusing on private equity, real estate, and public debt and equity markets. With a market capitalization of $114.5 billion, Blackstone plays a key role at various stages in the lifecycle of firms and startups, ranging from seed to late-stage investments.

Firms valued at $10 billion or more are typically categorized as “large-cap stocks,” and Blackstone fits this description well. As the largest alternative asset manager globally, its valuation above this benchmark is unsurprising. Currently, the company oversees more than $1 trillion in assets, including approximately 250 portfolio companies and 12,600 real estate properties.

Recent Stock Performance

Despite its significant strengths, BX stock has declined by 25% from its all-time high of $200.96 recorded on November 25, 2024. Moreover, BX has decreased 18.7% over the last three months, trailing behind the Financial Select Sector SPDR Fund’s (XLF) minor 68 basis point decline during the same period.

While Blackstone has experienced substantial growth over the longer term, its performance still lags behind other financial stocks. BX shares rose 9.3% over the previous six months and 19.1% over the last year, compared to XLF, which gained 9.8% and 23.6% respectively in those timeframes.

In assessing recent trends, BX has generally traded above its 200-day moving average for the past year. However, it fell below its 50-day moving average in mid-December 2024, indicating potential volatility.

Financial Results and Market Outlook

Despite reporting strong financials, Blackstone’s stock price dropped 4.1% following the release of its Q4 results on January 31. The company’s management fees and incentive fees surged significantly, driven by robust capital inflows and capital appreciation. Total revenues for the quarter soared 139.9% year-over-year to $3.1 billion, surpassing analysts’ expectations. Additionally, distributable earnings increased 56.3% year-over-year to $2.2 billion, with earnings per share of $1.69 exceeding forecasts by 14.2%.

Even with solid financial performance, recent macroeconomic changes have unsettled investors, potentially leading to reduced capital inflows in asset management. This environment could negatively impact Blackstone’s incentive fees from asset appreciation. Furthermore, the BX stock currently trades at a high price-to-earnings ratio of 43.82 on a trailing twelve-month basis, prompting some investors to take profits.

In comparison to its competitor, KKR & Co. Inc. (KKR), which has risen 22.5% over the past year, Blackstone has underperformed.

Analyst Consensus

Among the 22 analysts covering BX stock, the consensus rating is a “Moderate Buy.” The mean price target of $184.35 suggests a 22.3% premium over its current price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.