BlackRock falls 1.7% as Canada arm plans to terminate an iShares convertible bond ETF

What happened

BlackRock (BLK) fell 1.7% on October 23, 2026, after BlackRock Asset Management Canada said it will terminate the iShares Convertible Bond Index ETF as part of a review of its product lineup. The announcement was reported by GlobeNewsWire. The stock closed at $1,118.25, with trading volume 1.2 times its 20-day average, and opened 1.1% below the previous close. An ordinary session for this stock was the computed interpretation of the move.

How big was the move

The stock fell 1.7% on the day and fell 1.4% over the last five sessions, while the S&P 500 fell 0.5% on the day and fell 0.5% over five sessions. The Financial Services sector median fell 0.2% on the day, leaving the stock 1.5 percentage points worse than the sector median. Trading volume was 1.2 times its 20-day average and the session was about 1.2 times a typical daily move for this stock. The stock’s market sensitivity is reflected in a beta of 1.14, indicating the stock tends to move more than the market.

Taken together, the figures point to a routine trading day rather than an extraordinary market reaction. Volume modestly exceeded recent norms and the decline tracked a broader market dip, albeit with slightly greater downside than the sector median.

The technical picture

On technical measures, the stock sits in a mild uptrend. It was 2.5% above its 20-day moving average, 1.3% above its 50-day moving average and 5.3% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has been above the 200-day average for 15 consecutive trading days. The Relative Strength Index (14 days) was 55, which is in a neutral range between 30 and 70.

Over one month the stock rose 4.2% and over three months it rose 5.3%; over one year it fell 1.0% and is 14.8 percentage points behind the S&P 500 for that period. The stock was 5.8% below the 52-week high. Volatility was 23% annualized over 60 days, lower than 52% of its own readings over five years, suggesting recent price swings are near the middle of the stock’s historical range.

Fundamentals and valuation

For the four quarters through September 30, 2026, the company reported revenue of $28.54 billion, which grew 24.7% from a year earlier and compared with growth of 26.5% one quarter earlier. Diluted earnings per share for the period were $43.98, which rose 13.1% from a year earlier. Gross margin widened to 65.0% from 47.7% a year earlier, while operating margin was 30.8% versus 33.0% a year earlier. Free-cash-flow margin was 3.5% and return on invested capital was 6.7%. Share count over one year increased by 5.0%.

The stock traded at 25.4 times trailing earnings and that price to trailing earnings is higher than 76% of its own readings over the past five years, where the five-year median was 22.3 times earnings. Price to forward earnings was 19.5 times expected earnings and free-cash-flow yield was 0.6%. PromtFinance scores rank the company 26 for Value (Very weak), 26 for Growth (Very weak), 79 for Quality (Positive), 48 for Momentum (Neutral), 98 for Revisions (Exceptional), and 32 for Stability (Weak).

Those measures show a company that is profitable with expanding gross margins but priced richly versus its own history. The high ranking for Revisions suggests analysts have recently upgraded earnings expectations, while low Value and Growth scores reflect a stretched multiple relative to comparable readings.

Earnings and analyst expectations

The company’s last report, on October 14, 2026, showed earnings per share of $15.93 against $14.32 expected, 11.2% above estimates. That marked the 15th consecutive quarter beating estimates, with an average surprise over the last four reports of 9.0% above estimates. The typical two-day reaction after recent reports was the stock rose 2.7%. The next report is scheduled for January 21, 2027.

Analysts covering the stock number 33, with a consensus rating of Buy and 79% of ratings at Buy or Strong Buy. The consensus price target is $1,332.50, which is 19.2% above the closing price reported on October 23, 2026.

What to watch

• January 21, 2027: next quarterly earnings report.
• October 14, 2026: last report — earnings per share $15.93 vs $14.32 expected, 11.2% above estimates.
• The planned termination date for the iShares Convertible Bond Index ETF, as announced by BlackRock Asset Management Canada.
• Movements in the S&P 500 and the Financial Services sector median, which have recently fallen 0.5% and 0.2% on the day, respectively.
• Changes in the consensus price target or analyst count; current consensus price target is $1,332.50 from 33 analysts.