Standard & Poor's announced BlackRock would replace Genzyme (GENZ) in the broad market index late Tuesday, sparking a three-day rally in the stock. The shares closed Friday at $202.43, up 0.7% for the day, and 8.5% since the news of its inclusion in the index hit the wire.
Volume has picked up as well with 18.7 million shares changing hands on Friday alone. Wednesday and Thursday saw volume of 4.6 million and 2.7 million respectively. The three-month trailing daily average for the stock is around 810,000.
Genzyme is being removed because of its pending acquisition by Sanofi-Aventis (SNY). The deal is expected to close shortly.Share of BlackRock ticked 52 cents lower to $201.91 in late trades, according to Nasdaq.com, with volume running above 5.3 million, trailing only Citigroup (C) at 8.4 million, and AT&T (T) on the Nasdaq's list of most actively traded New York Stock Exchange-listed stocks. Genzyme was also seeing a good deal of attention in late trades, rising 14 cents to $76.15 on volume of more than 26 million, according to Nasdaq.com. The trading is likely being spurred by fund managers who look to mirror the performance of the S&P 500 making moves to recalibrate their portfolios to reflect the changes. BlackRock, which had an estimated $3.56 trillion in assets under management as of Dec. 31, has seen its shares rise 5.4% since the start of 2011 but the stock is still off 4.8% in the past year, and its 52-week high of $212.27 dates back to mid-April 2010. Overall Wall Street is positive on the company, which has topped consensus profit views for its past eight quarters and trades at a forward price-to-earnings multiple of 14.3X. Of the 15 analysts covering the stock, 11 are at either strong buy (4) or buy (7) and the median 12-month price target sits at $223, implying 10%-plus upside from current levels.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV