Ruth Porat, a director at Blackstone (BX) recently bought 296 shares. The buy increased her position by 1%, and came to a total cost of $40,342.
She was the last insider to buy with a 276 share pickup back in February, paying $61,926 to do so, and similar quarterly buys going back for several years. Other company insiders have been a bit more mixed, with some moderate sales from a few directors, the company’s Chief Accounting Officer, and General Council.
Overall, Blackstone insiders own 1.0% of shares.
The asset manager is up 12% over the past year, largely from higher asset valuations. Operationally, Blackstone has struggled. Revenues are down 8%, and earnings growth has declined by 27%.
However, Blackstone has a strong profit margin of 21%, reflecting the attractive economics of the asset management industry.
Action to take: With declining earnings and a rising share price, Blackstone is valued at 27 times forward earnings, somewhat on the higher end of its projections.
However, shares could be a compelling buy amid market fears as they trade near the lower-end of their 52-week range here. Plus, at current prices, Blackstone pays a 3% dividend. Those factors make shares wroth accumulating for long-term investors.
For traders, shares are still somewhat oversold from here. The July $150 calls, last trading for about $3.95, could see mid-double-digit returns over the coming weeks.
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.