Blackstone Stock Jumps on S&P 500 Inclusion: Is This Just the Beginning?
Following its inclusion in the S&P 500 index, Blackstone Group (NYSE:BX) experienced a notable 4% surge. This momentum has not waned, as the stock has continued to climb, shifting from its previous range around $104 to a robust $108.
The market's response has been marked by optimism, driven by factors poised to broaden the company's investor base. Among these, heightened demand from institutional investors, stemming from its S&P 500 inclusion and presence in ETFs, stands out.
Blackstone, a significant player in the investment services sector boasting a market capitalization of $76.8 billion, operates across four key segments: real estate, private equity, credit and insurance, and hedge funds. This diversified business model strategically positions the company as a formidable force within the financial sector.
The stock price is higher than many of its peers and is currently trading around the $110 mark, hovering near the 52-week highs. This turnaround comes after Blackstone entered a long-term downtrend from its historical peak near $150.
This decline began as speculation emerged about the Federal Reserve's intention to start raising interest rates in November 2021.
In response, BX experienced a downward trend, hitting a low of $71 in December of the previous year. However, it reversed this trend in 2023, stabilizing after a correction in the first quarter and breaking the pattern of lower peaks.
Source: InvestingPro
When comparing Blackstone to its peers, you'll notice that it maintains an attractive dividend yield, currently at 2.9%. This yield remains higher than what you'd find with similar companies, making it appealing to long-term investors, even during a downward trend.
However, the shareholder yield, at 0.9%
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