Volatility has hurt stocks like BlackRock stock (NYSE:BLK), which profits when its customers’ profit. Despite decreasing asset prices, BlackRock continues to sponge up Wall Street’s wealth, and its investment programs experienced solid demand in the third quarter.
The asset management has successfully negotiated a difficult market environment and might be an attractive company to purchase on the drop.
Blackrock Stock: It Is a Reputable Investing Firm With Thousands of Items
With approximately $8 trillion in assets under management, BlackRock generates and manages investments for customers and is the world’s biggest money manager (AUM).
The firm is arguably best known for its exchange-traded funds (ETFs), which it acquired from Barclays in 2009. As a result, it is well-positioned to benefit from the growing popularity of passive investment. BlackRock has nearly 1,000 ETFs in its global portfolio, accounting for $2.6 billion of its total AUM.
BlackRock also manages money for institutional customers such as pension funds, insurance companies, and endowments. It provides these customers with passive index investments and actively managed products. AUM from institutional customers totals $3.8 billion.
BlackRock stock (NYSE:BLK) has attracted a large number of investors. Even after factoring in the current decline, its AUM has increased from $1.3 trillion to roughly $8 trillion since 2008, representing a 14% annual growth rate. This expansion is critical to BlackRock’s business since advisory fees are calculated as a proportion of the total AUM. Earnings rise in lockstep with AUM.
Blackrock Stock: Navigating a Difficult Market
Most corporations, including BlackRock, have had a difficult year. Its AUM peaked at $10 trillion in 2021 but has since fallen to under $8 trillion, mostly due to declining asset prices.
Investors continue to pour money into its investment products despite the company’s declining AUM. Its ETFs received almost $22 billion in inflows in the third quarter, mostly due to rising demand for its bond ETFs. Another $48 billion was invested by institutional investors, largely in BlackRock’s actively managed portfolios.
BlackRock’s agreement with American International Group to manage up to $150 billion of the insurer’s assets when it spins off its AIG Life and Retirement division into a newly created entity is one of the drivers of these significant inflows. AIG committed its money to BlackRock due to its investment performance and the Aladdin platform, which enables customers to evaluate and manage risks on public and private assets.
Blackrock Stock Is a Fantastic Stock With Rock-Bottom Pricing
BlackRock stock (NYSE:BLK) now has a trailing price-to-earnings ratio of 15.8 and a price-to-sales ratio of around 4.7, both of which are lower than the company’s 10-year average.
While the market may remain volatile for some time, BlackRock stock (NYSE:BLK) is starting to appear like a good deal at its present pricing and might be a fantastic company to purchase on the drop today.
Featured Image- Megapixl @ Davidtran07
Author Okoro Chinedu 
