Ruth Porat, a director at Blackstone (BX), recently bought 269 shares. The buy increased her stake by 1%, and came to a total cost of $34,868.
Porat was the last buyer, with a 277 share pickup for just over $33,000 back in May. She and a second director also bought in February. Otherwise, two insiders, a director and the company’s Chief Accounting Officer, sold shares in the past few months. Over the past two years, sellers outnumber buyers.
In total, Blackstone insiders own 1% of shares.
The asset manager has jumped 33% in the past year, far outpacing the S&P 500, largely thanks to a rebound in the value of assets under management.
Operationally, Blackstone has not fared well over the last year, with earnings down by 26% and revenues down by 3%. However, rising asset prices have helped overlook that operational shortfall, and
Blackstone has managed to maintain a 20% profit margin, an above-average return for financial companies in the past year.
Shares trade at 27 times forward earnings, a slight premium to the overall market.
Action to take: Interested investors could buy a small position here, and use any market fears in the coming months to add to that stake. At current prices, shares pay a 2.6% dividend.
For traders, the January 2025 $150 calls, last trading for about $4.30, could see mid-to-high double-digit returns by year-end.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.