Stock of the Day

October 22, 2024

Blackstone (BX)

$140.53
+$2.77 (+2.0%)
Market Cap: $102.81B

About Blackstone

Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Blackstone Bull Case

Here are some ways that investors could benefit from investing in Blackstone Inc.:

  • The current stock price is around $138, which reflects a significant market presence and investor interest.
  • Blackstone Inc. has received multiple upgrades from analysts, indicating strong confidence in its future performance, with price targets set as high as $165.
  • The company reported a solid earnings per share of $1.09 recently, showcasing its profitability despite missing some analyst estimates.
  • Insider ownership is relatively low at 1%, suggesting that there may be room for growth and alignment with shareholder interests.
  • Blackstone Inc. has a strong market capitalization of over $100 billion, indicating its stability and ability to weather market fluctuations.

Blackstone Bear Case

Investors should be bearish about investing in Blackstone Inc. for these reasons:

  • The company recently cut its dividend, which may signal financial caution and could deter income-focused investors.
  • Blackstone Inc. has experienced a decline in stock price from its one-year high of approximately $200, indicating potential volatility.
  • Analysts have varied opinions on the stock, with some downgrading price targets significantly, which may reflect uncertainty in its future performance.
  • The company has a relatively high price-to-earnings ratio, suggesting that the stock may be overvalued compared to its earnings.
  • Recent trading volumes have been lower than average, which could indicate reduced investor interest or confidence in the stock.
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