Blackstone headquarters in New York.
Angus Mordant/Bloomberg
Blackstone stock has slumped so far in 2022, and director Ruth Porat just bought shares of the private-equity firm on the open market.
Blackstone (ticker: BX) stock has fallen 22% year to date, compared with a 13% drop in the S&P 500 index. Blackstone reported strong first-quarter earnings in April, and announced a dividend increase. Also that month, Blackstone announced two real-estate deals: a $7.6 billion acquisition of real-estate investment trust PS Business Parks (PSB), and a $12.8 billion buy of student-housing owner American Campus Communities (ACC).
After the company’s first-quarter report, Wells Fargo analyst Finian P. O’Shea noted reasons for Blackstone stock’s slide this year. “[I]n light of valuation headwinds (interest rates, inflation, geopolitical uncertainty), especially for relatively high-multiple names such as Blackstone, we remain cautious on Blackstone’s ability to achieve material valuation expansion in the next 12 months.”
Porat paid $548,450 on April 27 for 5,000 Blackstone shares, an average price of $109.69 each, according to a form she filed with the Securities and Exchange Commission. She now owns 15,942 Blackstone shares.
Alphabet didn’t respond to a request to make Porat available for comment on her purchase of Blackstone shares. Year to date, Alphabet shares are down 21%, about even with Blackstone stock.
Porat last purchased Blackstone stock on Feb. 25 when she paid $631,050 for 5,000 shares, an average price of $126.21 each.
Wells Fargo analyst O’Shea raised the price target on Blackstone stock to $122 from $120, “largely the result of the roll-over of balance sheet items from 12/31/21 to 3/31/22.” He rates shares at Equal Weight.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
