Blackstone (BX) Stock Up on $1.67 Billion AlliedBarton Sale

NEW YORK (TheStreet) --Shares of Blackstone Group (BSX) are higher by 1.16% to $41.10 at the start of trading on Tuesday morning, after the asset manager and financial services provider announced it is selling its AlliedBarton business to France-based investment company Wendel SE (WNDLF) for $1.67 billion.

AlliedBarton provides security services to a variety of customers across the U.S.

Blackstone said the transaction is expected to close later this year.

AlliedBarton thanked Blackstone for its support in a statement released by the company announcing the deal. AlliedBarton also expressed its excitement at the prospect of joining the Wendel team.

"Blackstone's counsel and invaluable support have been instrumental to the development and growth of our business, which has resulted in a successful investment outcome for all equity holders," AlliedBarton CEO Bill Whitmore said in a statement.

Separately, TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKSTONE GROUP LP (BX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BX's very impressive revenue growth greatly exceeded the industry average of 5.9%. Since the same quarter one year prior, revenues leaped by 63.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Capital Markets industry and the overall market, BLACKSTONE GROUP LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BLACKSTONE GROUP LP is rather high; currently it is at 56.18%. It has increased significantly from the same period last year. Along with this, the net profit margin of 25.24% is above that of the industry average.
  • Powered by its strong earnings growth of 127.27% and other important driving factors, this stock has surged by 25.70% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BLACKSTONE GROUP LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKSTONE GROUP LP increased its bottom line by earning $2.59 versus $1.98 in the prior year. This year, the market expects an improvement in earnings ($4.01 versus $2.59).
  • You can view the full analysis from the report here: BX Ratings Report

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing