Global investment giant Blackrock (NYSE:BLK) posted better-than-expected results during its fourth quarter. The company also announced the acquisition of Global Infrastructure Partners (GIP) in a $12 billion deal, which is anticipated to close in the third quarter of this year.
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Blackrock’s fourth-quarter revenue rose by 6.7% year-over-year to $4.63 billion. The figure landed largely in line with estimates. In contrast, EPS of $9.66 exceeded expectations by $0.79. The company’s AUM rose by $96 billion to over $10 trillion in Q4. Additionally, BLK hiked its quarterly dividend by 2% to $5.10 per share. The BLK dividend is payable on March 22 to investors of record on March 7.
The $12 billion acquisition of GIP includes $3 billion in cash and nearly 12 million BLK common shares. It is expected to create a global infrastructure franchise with a combined business of over $150 billion. Further, Blackrock announced the reorganization of its other platforms, including the Aladdin investment platform.
Is BLK a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on Blackrock and the average BLK price target of $834.07 points to a modest 5.2% potential upside in the stock. Shares of the company have gained nearly 11% over the past six months.
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