Analysts Cut Price Targets on BlackRock Stock Before Earnings

Deutsche Bank and BofA Global Research cut their price targets on the equity

Deputy Editor
Jul 13, 2022 at 1:27 PM
facebook twitter linkedin


Earnings season is kicking off with a host of major banking names reporting their quarterly results, but another in the financial sector is set to step into the earnings confessional later this week. BlackRock, Inc. (NYSE:BLK) is slated to take the stage on Friday, July 15, reporting second-quarter figures alongside Citigroup (C), before the market's open. Wall Street is anticipating BlackRock to chime in with earnings of $8.05 per share.

BlackRock stock has closed higher the day after reporting in four of the past eight quarters, though January and April saw the shares shed 2.2% and 0.2%, respectively, after earnings. On average, BLK swung 2.9%, regardless of direction, and this time around the options market is pricing in a slightly larger 4.9% next-day move.

On the analyst front, Deutsche Bank and BofA Global Research cut their price targets to $725 and $841, respectively. The 12-month consensus price target of $710 is a 19.2% to BlackRock stock's current perch of $593.86, and eight covering brokerages rate it a "buy" or better compared to just two "hold" recommendations. 

On the charts, the equity is hovering just above its June 16, roughly 21-month low of $575.60. BlackRock stock's 70-day moving average continues to weigh, thwarting two rallies in the last three months. Year-to-date, BLK is saddled with a 35.1% deficit.

BLK Chart July 13

Short-term options traders are approaching BlackRock stock with a call-bias at the moment. This is per the security's Schaeffer's put/call open interest ratio (SOIR) that stands higher than just 17% of readings in its annual range.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners