tl;dr
The State of Texas has made a significant decision to divest $8.5 billion from BlackRock, citing concerns about the asset manager's policies regarding fossil fuels. This move, prompted by a law from 2021, aims to restrict investments in companies that take part in boycotts of the oil and gas sector....
The State of Texas has made a significant decision to divest $8.5 billion from BlackRock, citing concerns about the asset manager's policies regarding fossil fuels. This move, prompted by a law from 2021, aims to restrict investments in companies that take part in boycotts of the oil and gas sector. The Texas Permanent School Fund, with a fiduciary duty to safeguard and grow annual oil and gas royalties, has officially terminated its financial management contract with BlackRock to ensure compliance with this law. However, BlackRock has condemned the decision, asserting that it could financially jeopardize schools in the state. Additionally, recent years have seen a trend of Republicans cutting ties with BlackRock due to perceived adverse effects of its Environmental, Social, and Corporate Governance (ESG) investing policies, resulting in significant divestments from BlackRock funds.
More about BlackRock Inc
BlackRock Inc. is a multinational investment management corporation based in New York City. With a market capitalization of over $119.5 billion, the company has a strong position in the finance sector. The stock has a current price-to-earnings ratio of 21.98, indicating a reasonable valuation. The stock has shown a 52-week range of $20 to $36.51, with the current price at $119.6. The stock has a beta of 0.308, suggesting lower volatility compared to the overall market. The company has a total cash balance of $17.859 billion, providing financial stability. The stock has shown a positive relative strength index (RSI) of 91.31, indicating overbought conditions. The stock also has a bullish trend with a positive momentum of 0.103. However, it is important to note that past performance is not always indicative of future results, and there are inherent risks associated with investing in the stock market.
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