BlackRock (BLK), the world’s largest asset manager, has announced plans to cut about 1% of its workforce, or about 200 employees, according to Bloomberg. The decision is part of the company’s strategy to realign its resources after spending over $25 billion on acquisitions in 2024.
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BlackRock’s Acquisition Spree in 2024
It is worth noting that BLK acquired Global Infrastructure Partners, an infrastructure assets investor, for $12.5 billion in October 2024, adding $116 billion in private market assets to its portfolio. Further, BlackRock entered an all-stock deal in December 2024 to buy HPS Investment Partners, a global credit investment manager, for $12 billion. The deal, which will add $148 billion in client assets, is expected to close by mid-2025.
Also, BLK is in the process of acquiring data provider Preqin for nearly $3.2 billion. Importantly, these acquisitions are expected to enhance BlackRock’s capabilities and drive future growth.
BLK to Report Q4 Results on January 15
Investors should note that BLK is slated to report its fourth-quarter earnings report on January 15, 2025.
Currently, Wall Street analysts expect BlackRock to post revenue of $5.60 billion in Q4, up 12.7% from the year-ago quarter. Meanwhile, the company is expected to report earnings of $11.33 per share, up from $9.66 in the prior-year quarter.
Is BLK a Good Stock to Buy?
Turning to Wall Street, BLK has a Strong Buy consensus rating based on 13 Buys and one Hold assigned in the last three months. At $1,151.64, the average BlackRock price target implies 16.79% upside potential. Shares of the company have gained 24.25% over the past six months.
