Blackstone Stock Surges 205% in 5 Years, Driven by Earnings Growth and Insider Buying

Blackstone's stock price has soared 205% over the last five years, with a 5.1% increase in just the last week. The company's total shareholder return has reached 267%, driven by consistent earnings growth and insider buying activity.

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Aqsa Younas Rana
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Blackstone Stock Surges 205% in 5 Years, Driven by Earnings Growth and Insider Buying

Blackstone Stock Surges 205% in 5 Years, Driven by Earnings Growth and Insider Buying

Blackstone Inc. (NYSE: BX) has seen its stock price soar an impressive 205% over the last five years, with a 5.1% increase in just the last week. This remarkable growth has resulted in a 267% total shareholder return, surpassing the share price return alone.

Why this matters: The significant growth of Blackstone's stock price and total shareholder return has implications for the overall health of the financial sector, as well as the confidence of investors in the market. This trend may also influence the investment strategies of other companies and investors, potentially shaping the broader economic landscape.

The company's strong performance can be attributed to several key drivers. Blackstone's earnings per share (EPS) have grown at a compound annual rate of 3.1% over the past five years. While this EPS growth is lower than the 25% average annual increase in the share price, it suggests that the market holds the company in high regard, driven by its consistent track record of earnings growth over the five-year period.

Another positive sign for investors is the significant insider buying activity observed in the last quarter. Insiders purchasing shares in their own companies is generally considered a bullish signal, indicating confidence in the company's future prospects. However, it is important to note that revenue and earnings trends are more meaningful measures of a business's health than insider transactions alone.

Blackstone's total shareholder return (TSR) provides a more comprehensive picture of the stock's performance. The TSR, which accounts for cash dividends, discounted capital raisings, and spin-offs, was an impressive 267% over the last five years, exceeding the share price return. The dividends paid by the company have further boosted the total return for shareholders.

In the last twelve months, Blackstone has rewarded shareholders with a total shareholder return of 54%, including dividends. The one-year TSR outperforms the five-year TSR, indicating that the stock's performance has improved in recent times. This suggests that the company's growth strategies and market positioning are resonating well with investors.

Despite the impressive performance, investors should be aware of two warning signs for Blackstone. It is essential to conduct thorough research and consider various factors, such as market conditions, competitive landscape, and regulatory environment, before making investment decisions. A free interactive report on Blackstone's earnings, revenue, and cash flow is available for further analysis.

Blackstone's stock performance over the past five years has been nothing short of remarkable, with a 205% surge in share price and a 267% total shareholder return. The company's consistent earnings growth, insider buying activity, and recent outperformance indicate a positive outlook for investors. However, as with any investment, it is crucial to carefully evaluate the risks and conduct comprehensive due diligence before making a decision.

Key Takeaways

  • Blackstone's stock price surged 205% over the last 5 years.
  • Total shareholder return was 267%, exceeding share price return.
  • Earnings per share grew at a 3.1% compound annual rate.
  • Insider buying activity observed in the last quarter, a bullish signal.
  • One-year TSR was 54%, outperforming the 5-year TSR, indicating improved performance.