BlackRock Inc. (Trades, Portfolio), a leading investment management corporation, has recently reduced its stake in EQT Corp, an independent natural gas production company. This article will delve into the details of the transaction, provide an overview of both BlackRock Inc. (Trades, Portfolio) and EQT Corp, and analyze the implications of this move on both entities.
Details of the Transaction
On July 31, 2022, BlackRock Inc. (Trades, Portfolio) reduced its holdings in EQT Corp by 32,062,933 shares, a significant decrease of 52.25%. The shares were traded at a price of $44.03 each. This transaction had a minor impact of -0.05% on BlackRock's portfolio. Despite the reduction, EQT Corp still holds a position in BlackRock's portfolio, accounting for 0.04% of its total holdings. BlackRock now owns 8.10% of EQT Corp's total shares, amounting to 29,298,190 shares.
Profile of BlackRock Inc. (Trades, Portfolio)
Founded in 1988, BlackRock Inc. (Trades, Portfolio) is a globally recognized investment management corporation that operates through a vast group of subsidiaries. The firm's investment philosophy is rooted in risk management, with its platform monitoring about 7% of the world's total financial assets. BlackRock has a significant presence in virtually every financial market in the world, with 21 investment centers and 70 offices in 30 countries. The firm's top holdings include Apple Inc(AAPL, Financial), Amazon.com Inc(AMZN, Financial), Alphabet Inc(GOOGL, Financial), Microsoft Corp(MSFT, Financial), and NVIDIA Corp(NVDA, Financial).
As of the date of this article, BlackRock's equity stands at a staggering $3,388.31 trillion, with the technology and healthcare sectors being its top sectors. The firm holds a total of 5,334 stocks in its portfolio.
Profile of EQT Corp
EQT Corp is a U.S.-based independent natural gas production company with operations focused in the cores of the Marcellus and Utica shales in the Appalachian Basin. The company's revenue stems from three types of gas reserves: natural gas, natural gas liquids, and crude oil. As of now, EQT Corp has a market capitalization of $15.52 billion and a PE percentage of 4.83. The current stock price stands at $42.91.
According to GuruFocus, EQT Corp's stock is significantly overvalued with a GF Value of 29.89 and a Price to GF Value ratio of 1.44. The stock has a GF Score of 70/100, indicating a poor future performance potential. The company's Financial Strength and Profitability Rank stand at 6/10 and 7/10 respectively, while its Growth Rank is 5/10.
Comparison with Other Gurus
BlackRock Inc. (Trades, Portfolio) is not the only guru holding EQT Corp shares. The largest guru holding EQT Corp shares is Appaloosa LP. Other gurus holding the stock include T Rowe Price Equity Income Fund (Trades, Portfolio), Ronald Muhlenkamp (Trades, Portfolio), and Arnold Van Den Berg (Trades, Portfolio).
Conclusion
In conclusion, BlackRock Inc. (Trades, Portfolio)'s recent reduction in EQT Corp shares is a significant move that has implications for both entities. Despite the reduction, EQT Corp still holds a position in BlackRock's portfolio. The transaction reflects BlackRock's investment strategy and risk management philosophy. On the other hand, EQT Corp's stock performance and valuation indicate a challenging outlook. Investors should keep a close eye on these developments and make informed decisions based on comprehensive analysis.
