BlackBerry (NYSE:BB) Shares Gap Up Following Earnings Beat

Key Points

• Shares gapped up after the company reported quarterly EPS of $0.06 (vs. $0.05 consensus) and revenue up 10.1% year-over-year; the stock opened at $3.82 (prior close $3.53) and was last near $3.9270 on ~9.97M shares.
• Analysts have a consensus "Hold" rating with an average price target of $4.92 (rating mix: 1 Buy, 6 Hold, 1 Sell).
• Insiders have been selling, with 73,171 shares sold in the last three months (including CEO and SVP sales), and insiders now own about 0.37% of the stock.

BlackBerry Limited (NYSE:BB - Get Free Report)'s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $3.53, but opened at $3.82. BlackBerry shares last traded at $3.9270, with a volume of 9,967,125 shares trading hands.

The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.05 by $0.01. BlackBerry had a net margin of 4.02% and a return on equity of 8.05%. During the same quarter in the prior year, the business posted $0.03 EPS. The firm's revenue was up 10.1% on a year-over-year basis.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Weiss Ratings reissued a "sell (d+)" rating on shares of BlackBerry in a research report on Wednesday, March 25th. Canaccord Genuity Group reaffirmed a "hold" rating and set a $4.60 price target on shares of BlackBerry in a report on Friday, December 19th. Wall Street Zen downgraded shares of BlackBerry from a "buy" rating to a "hold" rating in a report on Saturday, February 14th. TD Securities raised shares of BlackBerry to a "hold" rating in a report on Monday, December 22nd. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $4.50 price target on shares of BlackBerry in a report on Friday, December 19th. One research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, BlackBerry has a consensus rating of "Hold" and an average price target of $4.92.

Insider Buying and Selling

In related news, CEO John Joseph Giamatteo sold 27,066 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $3.56, for a total value of $96,354.96. Following the transaction, the chief executive officer owned 899,146 shares of the company's stock, valued at approximately $3,200,959.76. This trade represents a 2.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Jennifer Armstrong-Owen sold 29,908 shares of the firm's stock in a transaction that occurred on Saturday, April 4th. The stock was sold at an average price of $3.56, for a total transaction of $106,472.48. Following the completion of the transaction, the senior vice president directly owned 94,903 shares in the company, valued at approximately $337,854.68. The trade was a 23.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 73,171 shares of company stock worth $260,489. 0.37% of the stock is currently owned by insiders.

Institutional Trading of BlackBerry

Several hedge funds have recently bought and sold shares of BB. Delos Wealth Advisors LLC bought a new stake in BlackBerry during the third quarter valued at about $34,000. CI Investments Inc. raised its stake in BlackBerry by 48.4% during the 3rd quarter. CI Investments Inc. now owns 8,414 shares of the company's stock worth $41,000 after acquiring an additional 2,745 shares during the period. Portfolio Resources Advisor Group Inc. purchased a new position in BlackBerry during the fourth quarter valued at approximately $46,000. DGS Capital Management LLC purchased a new position in BlackBerry during the fourth quarter valued at approximately $52,000. Finally, State of Wisconsin Investment Board purchased a new position in BlackBerry during the fourth quarter valued at approximately $54,000. Institutional investors own 54.48% of the company's stock.

BlackBerry Price Performance

The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.26. The firm has a market cap of $2.32 billion, a PE ratio of 130.88 and a beta of 1.70. The firm's fifty day simple moving average is $3.41 and its two-hundred day simple moving average is $3.98.

BlackBerry Company Profile

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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