One of Wall Street’s most prominent names may be cashing out of his own company. Larry Fink is known for his decades of experience leading BlackRock (NYSE:BLK). One outlet recently described him as “the most powerful person on Wall Street.” But the decorated CEO recently reported that he had sold roughly 35,800 shares, amounting to 7% of his stake in the investment firm. According to a Form 4 filing with the Securities and Exchange Commission (SEC), he is walking away from the sale with roughly $25 million in profits. News of Fink’s massive sale has pushed BLK stock down today as markets react negatively to this new development.
Does this mean that investors should approach BlackRock with caution throughout the coming year? Let’s take a closer look and assess what this likely means for the company.
What’s Happening With BLK Stock
While Fink’s company is down this morning, its current trajectory hints at a rally. As of this writing, it is down less than 0.50% for the day but is working hard to rally. While it hasn’t been a good week for the investment firm, BLK has risen steadily over the past month, despite the banking crisis sending harmful shockwaves through the financial sector. But while Fink’s decision to offload shares may worry some investors, it doesn’t mean the company is struggling. It’s important to note that the CEO still holds roughly 484,000 BLK shares, collectively worth approximately $335 million. He’s still heavily invested in the company.
All this suggests that BLK stock will bounce back soon. As volatile as it has its performance this year, BlackRock is taking steps to shake its losing streak. As InvestorPlace contributor Will Ashworth notes, the company is successfully implementing artificial intelligence (AI) and machine learning into its operations, which could set it up for success nicely as the AI boom continues. Fink is likely seeking to diversify his personal assets, but it doesn’t appear he is giving up on his company.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
