BLK shares are technically overbought before earnings
Investment management concern BlackRock, Inc. (NYSE:BLK) hit a fresh 52-week high of $525 earlier, setting up the shares for an eighth straight weekly win. The stock was most recently seen at $516.71, as traders prepare for the company's earnings release, scheduled for before the open tomorrow, Jan. 15. BLK's 14-day Relative Strength Index (RSI) checked in at 75 before today, showing overbought conditions heading into the quarterly event.
Options traders have still been betting bullishly, however. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 1.56, which ranks in the 91st annual percentile. Peak call open interest overall resides at the January 2020 510-strike call.
From a broader perspective, analysts are already fully behind the security, with eight of nine in coverage handing out "buy" or "strong buy" ratings. What's more, the average 12-month price target of $567.50 stands as a roughly 9% premium to current levels, suggesting a poor earnings performance could make analysts downwardly adjust their outlooks. Of course, earnings from large-cap finance stocks have so far been mostly solid. Regardless of direction, options traders are pricing in a 3.9% post-earnings swing for BlackRock, which last quarter gained 2.4% after its release.
