What's Going On With BlackRock Stock Today?

BlackRock, Inc. BLK shares are trading relatively flat on Wednesday.

The company has reportedly canceled meetings with companies amid U.S. Securities and Exchange Commission’s new investor activism rules, raising concerns over the future of environmental, social, and governance engagement, The Financial Times reports.

The SEC’s recent rule changes, which target the influence of ESG factors in investing, have forced BlackRock to pause its usual “stewardship” meetings while it assesses the new regulatory landscape, the report adds, citing people familiar with the discussions.

According to Benzinga Pro, BLK stock has gained over 22% in the past year. Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF.

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The SEC’s updated guidelines impose more stringent requirements on fund managers who aim to influence corporate behavior, such as pressing for changes in executive compensation or promoting climate risk disclosures.

Previously, managers owning more than 5% of a company could file a relatively simple 13-G form, but now they may need to file a 13-D, triggering more complex disclosures and deadlines.

This regulatory shift complicates BlackRock’s ability to engage on key ESG topics and undermines efforts to address corporate governance issues like poison pill plans, the report further notes.

The rule changes have drawn criticism for curbing the power of fund managers to press companies on social and environmental issues, especially as conservative lawmakers intensify pressure on firms like BlackRock over their perceived influence on corporate America.

As BlackRock and other asset managers navigate these new requirements, the broader impact on ESG investing and corporate governance remains unclear.

Price Action: BLK shares are trading higher by 0.86% to $986.23 at last check Wednesday.

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