A quickly rising stock price is causing at least one stock analyst to warn buyers away from shares in mutual fund giant BlackRock
(BLK). On Tuesday, Standpoint Research downgraded its opinion of BlackRock shares to "hold" from "buy", reports Street Insider
and Localized USA
Standpoint analyst Ronnie Moas pointed to the $40 per share rise in the price of BlackRock shares as a reason for his decision. The move pushed the share price up 28 percent to $178.51.
BlackRock shares has a 52-week low of $137.00 and a 52-week high of $209.77. The stock’s 50-day moving average is $165.2 and its 200-day moving average is $166.9.
The asset manager's market cap stands at $31.928 billion. Its P/E ratio is 14.08.
Standpoint's analysts states that BlackRock's relative strength at (70/100) is not yet a concern, but its $40 move since October 1 is double the move in the S&P 500. The stock's rise came despite its earnings estimates dropping to $12.80 from $13.80.
On the other hand, TheStreet analysts upgraded BlackRock shares to a "buy" rating last December 6 while Citigroup also gave the fund a "buy" rating and raised the funds price rating to $190 last November 17, reports Localized USA
BlackRock claimed AUM of $3.345 trillion as of end-September.
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