At This Level, Does Buying The Blackstone Group L.P. (BX) Makes Sense?

Analysts at JP Morgan upped their rating on shares of The Blackstone Group L.P. (NYSE:BX) from Neutral to Overweight in their opinion released on January 12. Citigroup analysts bumped their recommendation on BX stock from Neutral to Buy in a separate flash note to investors on May 22. Analysts at Deutsche Bank downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to March 11.

By watching the trading activity of corporate insiders, it will become easier to get a sense of The Blackstone Group L.P. (NYSE:BX)’s prospects. The earliest insider trade took place on 08/20/2018. Hill J Tomilson parted with a total of 674.26 thousand shares of company at average share price of $36.48. The total for the sales was set at $24.6 million. After this transaction, the Vice Chairman account balance stood at 2.03 million shares. The stock lost -12.01 percent since that insider sale. On 08/10/2018, Finley John G, Chief Legal Officer, sold 10 thousand shares at a price per share of $35.76. This removed 357.6 thousand shares from the insider’s fortune and the stock saw a -10.23 percent retreat in value since the news became public. This transaction left 180.01 thousand shares in the Chief Legal Officer account. On 06/12/2018, Chief Legal Officer Finley John G performed a sale transaction worth $664.6 thousand. This sale at $33.23 each has eliminated 20 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -3.4 percent decrease since the transaction was reported. The insider now is left with 190.01 thousand shares remaining in the account. Hill J Tomilson, who performs the Vice Chairman job, sold 53.04 thousand shares for $1.8 million. The disposal occurred on 03/09/2018 was priced at $34.01 per share. The share price plunged -5.62 percent since the reporting date. Hill J Tomilson now left with a stake of 2.71 million BX stock worth $86.95 million after the insider selling.

The Blackstone Group L.P. (BX) is expected to jump by 36.04 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $49-month high price target. This represents a whopping 52.65 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $44, which represents a return potential of 37.07 percent when compared to the closing price of the stock of $32.1 on Thursday, December 06. The lowest price target for the stock is $34 — slightly more than 5.92 percent from BX’s current share price.

The shares are currently floating around the first support level of $31.22. Below this, the next support is placed in the zone of $30.34. Till the time, the BX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.66 on daily chart, which may remain a cause for concern. If the price breaks below $30.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $32.68 mark may result into a pull-back move towards $33.26 level.

BX shares dropped -0.61 points or -1.86 percent on Thursday to $32.1 with a heavy trade volume of 11.694 million shares. After opening the session at $32.38, the shares went as high as $32.38 and as low as $30.92, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $38.6 billion and now has 1.2 billion shares outstanding. The Blackstone Group L.P. (BX) stock has lost -5.11 percent of market value in 21 trading days.

BX stock has a trailing 3-year beta of 1.33, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.19 a share in the trailing twelve months. The stock’s value has surged 0.25 percent year to date (YTD) against a decline of -0.12 percent in 12 month’s time. The company’s shares still trade -20.94 percent away from its 1-year high of $40.60 and 6.72 percent up from 52-week low of $30.08. The average consensus rating on the company is 1.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of The Blackstone Group L.P. (BX) are trading at a P/E ratio of 10.6 times earnings reported for the past 12 months. The industry BX operates in has an average P/E of 229.55. Its P/E ratio went as low as 11.78X and as high as 28.15 over the 5-year span. Further, it is sporting a 4.7 on the Price-to-Sales ratio. Compare this with the industry average P/S of 52.72. 95 percent is the gross profit margin for The Blackstone Group L.P. and operating margin sits at 55.9 percent. Along with this, the net profit margin is 22.3 percent.