Valued at a market cap of $107 billion, Blackstone Inc. (BX) is an alternative asset management company specializing in private equity, real estate, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The New York-based company raises capital from pension funds, sovereign wealth funds, insurance companies, high-net-worth individuals, and retail investors, and deploys it across a diversified portfolio of private and public assets.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and BX fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company is known for its scale, deep industry expertise, and disciplined investment approach, along with its ability to drive value creation in portfolio companies through operational improvements and strategic growth initiatives.
Despite its notable strength, this asset management giant has dipped 25.4% from its 52-week high of $194.23, reached on Nov. 27, 2024. Shares of BX have declined 15.5% over the past three months, considerably lagging behind the Nasdaq Composite’s ($NASX) 7.8% rise during the same time frame.
In the longer term, BX has fallen 24.4% over the past 52 weeks, notably underperforming NASX's 21.1% uptick over the same time period. Moreover, on a YTD basis, shares of Blackstone are down 16%, compared to NASX’s 20.2% return.
To confirm its bearish trend, BX has been trading below its 200-day moving average since late October and has remained below its 50-day moving average since late September.
On Oct. 23, BX’s shares plunged 4.2% after its Q3 earnings release, despite posting better-than-expected results. The company’s total revenue declined 15.7% year-over-year to $3.1 billion, but topped the consensus estimates. Moreover, its distributable earnings of $1.52 per share increased by a notable 50.5% from the year-ago quarter, handily surpassing Wall Street expectations of $1.21. Additionally, its fee-related earnings advanced 26% from the same period last year, reaching $1.5 billion.
BX has outpaced its rival, KKR & Co. Inc. (KKR), which declined 25.1% over the past 52 weeks and 18.3% on a YTD basis.
Despite Blackstone’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 23 analysts covering it, and the mean price target of $178.14 suggests a 22.9% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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