Blackrock (NYSE:BLK), the largest investment manager worldwide, is facing major activist investor action. Separately, the company’s first-quarter numbers are coming up on April 12.
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Activist Push
Activist investor Bluebell Capital Partners is seeking to bar Larry Fink from acting as both CEO and Chairman at BlackRock. Bluebell is also seeking a board shakeup and increased oversight in the form of an independent chair at the company. The push from Bluebell comes owing to what it deems an inconsistent approach to ESG investing by BlackRock.
BLK Board’s Opposition
On the other hand, BlackRock’s board noted that the proposal from Bluebell was not in the best interests of the company’s shareholders. Fink co-founded BlackRock in 1988. The company noted in a filing that Fink serving in both roles is an effective strategy. This stems from his more than three decades of leadership experience and understanding of the company’s operations.
Notably, Fink’s compensation at BlackRock declined by nearly 18% to around $26.9 million last year.
Upcoming Q1 Results
The activist push at BlackRock comes just ahead of the company’s first-quarter results on April 12. Analysts expect BlackRock to post an EPS of $9.32 on revenue of $4.64 billion for the quarter. In the comparable year-ago period, BLK’s EPS of $7.93 had come in better than expectations by $0.15.
Is BLK a Good Stock to Buy?
BlackRock’s share price has rallied by nearly 25% over the past six months. Overall, the Street has a Strong Buy consensus rating on the company alongside an average BLK price target of $908.14.
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