What I’m Watching When The Blackstone Group L.P. (BX) Reports Earnings

It has been reported that multiple insider activity took place at The Blackstone Group L.P. (BX). Vice Chairman HILL J TOMILSON sold 674,257 shares for $2,034,489 in transaction occurred on 2018/08/20. After making this transaction, Vice Chairman owns a direct stake of -3 shares, worth $72,285,394, as per the last closing price. On 2018/08/10 Finley John G, Chief Legal Officer at BX, dumped 10,000 shares at an average price of $35.76 per share. The selling total is valued at $6,395,649.

Chief Legal Officer, Finley John G had divested 20,000 shares for $190,007 through a trade on 2018/06/12. Following this activity, the insider holds 7 shares worth $6,750,949 as of recent close.

Income Fund of America Inc revealed as top hedge fund owner in The Blackstone Group L.P. (BX) with a stake of over 17.94M BX shares as of December 30, with a market value of approx. $534.9M as of today. The second largest holder, American Balanced Fund, with 8.74M shares which equates to $260.64M worth of the stock. At third is Legg Mason Clearbridge Dividend Strategy Fd, which stood pat with 4.3M shares, a 0.3% position in The Blackstone Group L.P., worth $128.18M. The insider holding in stood at 0.1% while institutions hold 51.9%.

The Blackstone Group L.P. (NYSE:BX) rose 1.89% in recent trade and currently has a stock-market value of $42.41B. The shares finished at $35.53, after trading as low as $35.12 earlier in the session. It hit an intraday high Friday at $35.65. Trading activity significantly improved as the volume at ready counter increased to 3,065,430 shares versus 2,186,780 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,149,240 shares. The stock is now 32.18% above against its bear-market low of $26.88 on December 20, 2018. It has retreated -14.27% since it’s 52-week high of $40.6 reached in September. Now the market price is up 14.13% on the year and up 19.19% YTD.

BX stock’s 50 day simple moving average (SMA 50) price is $34.22 and its 200-day simple moving average (SMA 200) price is $34.19. The company’s stock currently has a total float of 1.19B shares. Its weekly volatility is hovering around 1.42% and felt 1.89% volatility in price over a month. On the upside, the share price will test short term resistance at around $35.75. On a downside, the stock is likely to find some support, which begins at $35.22. The failure to get near-term support could push it to $34.9.

It had seen a positive analyst call from JP Morgan, which upgraded the stock from Neutral to Overweight on January 12. Analysts at Citigroup, shed their negative views on May 22 by lifting it fromNeutral to Buy. The stock lost favor of Deutsche Bank analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on March 11. Argus, reiterated their call for Buy, on February 02. On the other hand, they had set new target price to $38 versus $43.

When looking at valuations, The Blackstone Group L.P. (BX) has a cheap P/E of 15.83x as compared to industry average of 88.13x. Moreover, it trades for 11.39 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.77x price/book and 6.21x price/sales. Compared to others, The Blackstone Group L.P. is in a different league with regards to profitability, having net margins of 22.6%. To put some perspective around this, the industry’s average net margin is 44.73%. BX’s ROE is 22.9%, which is also considerably better than the industry’s ROE of 12.51%.

Shares of BX have gained 7.2% since the company’s most recent earnings report. Over the past 12 fiscal quarters, The Blackstone Group L.P. (NYSE:BX) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. BX last reported earnings that receded expectations. The company raked in $0.05 per share, -98.86% change on the same period last year. That was worse than consensus for $0.05. Revenue for the recent quarter stood at $504.98 million, down -72% on last year and above the $326.09 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.43 billion to $1.8 billion, which should be compared with $1.88 billion generated last year. EPS is seen in a range of $0.5 to $0.71, against the $0.81 reported a year ago.