BlackBerry (NYSE:BB) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded BlackBerry from “strong buy” to “hold,” while the broader analyst consensus remains “hold” with an average price target of $8.92.
• BlackBerry reported quarterly EPS of $0.04 and revenue of $152.9 million, surpassing estimates of $0.03 EPS and $136.1 million revenue; revenue increased 25.6% year over year.
• Company insiders sold shares worth approximately $4.0 million over the past quarter, including sizable sales by the CEO and CFO, while institutional investors own 54.48% of the stock.

BlackBerry (NYSE:BB - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

A number of other brokerages also recently weighed in on BB. Stifel Nicolaus assumed coverage on shares of BlackBerry in a research note on Wednesday, June 24th. They set a "buy" rating and a $12.00 target price for the company. Canadian Imperial Bank of Commerce increased their price target on BlackBerry from $10.00 to $13.00 and gave the stock an "outperformer" rating in a report on Friday, June 26th. Royal Bank Of Canada lifted their price objective on BlackBerry from $4.50 to $9.00 and gave the stock a "sector perform" rating in a research report on Friday, June 26th. Raymond James Financial boosted their price objective on BlackBerry from $4.75 to $9.50 and gave the company a "market perform" rating in a research note on Friday, June 26th. Finally, Canaccord Genuity Group upped their target price on BlackBerry from $8.20 to $10.30 and gave the company a "hold" rating in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $8.92.

BlackBerry Stock Performance

NYSE:BB opened at $7.80 on Tuesday. The company has a market capitalization of $4.58 billion, a PE ratio of 86.68 and a beta of 2.25. The company has a 50 day simple moving average of $9.42 and a two-hundred day simple moving average of $6.70. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.20 and a current ratio of 2.20. BlackBerry has a fifty-two week low of $3.12 and a fifty-two week high of $13.59.

BlackBerry (NYSE:BB - Get Free Report) last issued its quarterly earnings results on Thursday, June 25th. The company reported $0.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.03 by $0.01. The firm had revenue of $152.90 million for the quarter, compared to the consensus estimate of $136.10 million. BlackBerry had a net margin of 10.31% and a return on equity of 11.66%. The company's revenue for the quarter was up 25.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.02 EPS. BlackBerry has set its FY 2027 guidance at 0.160-0.200 EPS and its Q2 2027 guidance at 0.030-0.040 EPS. Research analysts anticipate that BlackBerry will post 0.13 earnings per share for the current year.

Insider Activity at BlackBerry

In related news, CFO Tim Foote sold 25,878 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $12.39, for a total transaction of $320,628.42. Following the transaction, the chief financial officer directly owned 58,372 shares of the company's stock, valued at $723,229.08. This represents a 30.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John Joseph Giamatteo sold 152,012 shares of the firm's stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $11.35, for a total transaction of $1,725,336.20. Following the completion of the sale, the chief executive officer owned 687,246 shares of the company's stock, valued at $7,800,242.10. The trade was a 18.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 355,858 shares of company stock worth $4,012,270 over the last quarter. 0.51% of the stock is currently owned by insiders.

Institutional Trading of BlackBerry

Several large investors have recently made changes to their positions in BB. Amundi acquired a new position in BlackBerry during the 2nd quarter worth approximately $1,086,000. TD Waterhouse Canada Inc. boosted its holdings in BlackBerry by 127.3% in the second quarter. TD Waterhouse Canada Inc. now owns 105,040 shares of the company's stock worth $1,348,000 after acquiring an additional 58,818 shares in the last quarter. Nykredit A S acquired a new stake in BlackBerry in the second quarter valued at approximately $111,000. Nwam LLC acquired a new stake in BlackBerry in the second quarter valued at approximately $7,070,000. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of BlackBerry during the second quarter valued at approximately $3,591,000. 54.48% of the stock is currently owned by institutional investors and hedge funds.

About BlackBerry

BlackBerry Limited, formerly known as Research In Motion (RIM), is a Canadian enterprise software and cybersecurity company based in Waterloo, Ontario. Since its founding in 1984, the firm has evolved from a pioneer in mobile devices into a specialist in secure communications, endpoint management, and embedded systems software. BlackBerry's core mission today centers on delivering security-first solutions that protect critical data and infrastructure across diverse industries.

At the heart of BlackBerry's offerings is the BlackBerry Spark® platform, which combines unified endpoint management (UEM), secure communications, and artificial intelligence–driven threat detection into a single framework.

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