PNC Slips After Selling Billion-Dollar BlackRock Stake

The exit sparked an upgrade fro Stephens

Deputy Editor
May 12, 2020 at 11:30 AM
facebook X logo linkedin

The shares of PNC Financial Services Group Inc (NYSE:PNC) are down 4% to trade at $98.86, following the firm's announcement that it's selling its 22% stake, worth roughly $17 billion, in BlackRock (BLK). The move earned an upgrade from Stephens to "overweight" from "equal weight," calling the exit a smart move, ahead of any major political changes next fall. 

Though today's dip was captured by recent support at its 40-day moving average, PNC has had trouble distancing itself from its March lows, with pressure at the $105 level, for the most part, keeping a lid on the shares. The bank stock is down 38% year-to-date. 

Coming into today, seven out of  the 17 analysts covering PNC considered it a "buy" or better, with nine hashing out tepid "hold," and just one saying "strong sell." Meanwhile, the 12-month consensus price target of $112.19 is a 12.3% premium to current levels. 

Calls are favored in the options pits. PNC sports a 50-day call/put volume ratio of 1.6 at the International Securites Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of readings from the past year. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.