BlackRock shares fall for a second straight session on Monday, asset manager is now the largest shareholder in Authentic Brands Group

August 13, 2019 9:35 am

Long Term Private Capital, BlackRock Inc’s new private equity fund, has invested $875 million in a stake in US-based Authentic Brands Group LLC, the asset manager said. This way LTPC has become the largest shareholder in Authentic Brands.

BlackRock shares closed lower for a second consecutive trading session in New York on Monday. The stock went down 2.25% ($9.61) to $416.72, after touching an intraday low at $414.46, or a price level not seen since March 25th ($413.30).

Shares of BlackRock Inc have risen 6.08% so far in 2019 compared with a 15.01% gain for the benchmark index, S&P 500 (SPX).

In 2018, BlackRock Inc’s stock went down 23.53%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

The agreement was announced during the past weekend and gives Authentic Brands Group a value of over $4 billion including debt, the Wall Street Journal reported, citing anonymous sources.

“The fund itself put $625 million and we have another $250 million that is coming from related entities and co-investors,” André Bourbonnais, head of BlackRock’s Long Term Private Capital, was quoted as saying by Reuters.

Long Term Private Capital is part of BlackRock’s Alternative Investors segment, which manages investments in real assets, private credit and private equity.

Analyst stock price forecast and recommendation

According to CNN Money, the 13 analysts, offering 12-month forecasts regarding BlackRock Inc’s stock price, have a median target of $535.00, with a high estimate of $567.00 and a low estimate of $453.00. The median estimate represents a 28.38% upside compared to the closing price of $416.72 on August 12th.

The same media also reported that at least 12 out of 15 surveyed investment analysts had rated BlackRock Inc’s stock as “Buy”, while 3 – as “Hold”.

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