BlackBerry (NYSE:BB) Trading Down 3.5% Following Analyst Downgrade

Key Points

• BlackBerry shares dropped 3.5% after TD Securities downgraded the stock from a buy to a hold rating, with a revised price target of $5.00.
• Despite the downgrade, other analysts have varied opinions, with Robert W. Baird and Zacks Research raising their price targets and ratings for the stock.
• Insider Philip S. Kurtz recently sold 44,178 shares, decreasing his stake by 31.64%, while institutional investors like Voya Investment Management have significantly increased their holdings in BlackBerry.

Shares of BlackBerry Limited (NYSE:BB - Get Free Report) were down 3.5% during trading on Friday after TD Securities downgraded the stock from a buy rating to a hold rating. TD Securities now has a $5.00 price target on the stock, up from their previous price target of $4.00. BlackBerry traded as low as $4.49 and last traded at $4.59. Approximately 4,042,717 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 16,318,674 shares. The stock had previously closed at $4.75.

Other equities analysts also recently issued reports about the stock. Robert W. Baird upped their price target on shares of BlackBerry from $5.00 to $5.50 and gave the company a "neutral" rating in a report on Friday, September 26th. CIBC reiterated an "outperform" rating on shares of BlackBerry in a report on Tuesday, June 24th. Wall Street Zen upgraded BlackBerry from a "hold" rating to a "buy" rating in a report on Friday, September 26th. Royal Bank Of Canada raised their target price on shares of BlackBerry from $4.00 to $4.50 and gave the company a "sector perform" rating in a research note on Friday, September 26th. Finally, Zacks Research raised shares of BlackBerry from a "hold" rating to a "strong-buy" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, BlackBerry presently has a consensus rating of "Hold" and a consensus target price of $5.10.

Insiders Place Their Bets

In other news, insider Philip S. Kurtz sold 44,178 shares of the business's stock in a transaction that occurred on Sunday, September 28th. The shares were sold at an average price of $4.95, for a total value of $218,681.10. Following the sale, the insider directly owned 95,468 shares of the company's stock, valued at approximately $472,566.60. The trade was a 31.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On BlackBerry

A number of large investors have recently modified their holdings of the company. Voya Investment Management LLC purchased a new stake in shares of BlackBerry in the 1st quarter valued at approximately $95,166,000. Connor Clark & Lunn Investment Management Ltd. boosted its holdings in shares of BlackBerry by 69.1% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 23,112,391 shares of the company's stock valued at $87,064,000 after buying an additional 9,442,676 shares in the last quarter. Vanguard Group Inc. boosted its holdings in shares of BlackBerry by 1.0% in the 1st quarter. Vanguard Group Inc. now owns 23,084,515 shares of the company's stock valued at $86,936,000 after buying an additional 218,684 shares in the last quarter. First Trust Advisors LP boosted its stake in BlackBerry by 5.0% during the 2nd quarter. First Trust Advisors LP now owns 15,748,114 shares of the company's stock worth $72,126,000 after purchasing an additional 751,216 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in BlackBerry by 1,390.6% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,589,886 shares of the company's stock worth $71,397,000 after purchasing an additional 14,544,005 shares during the period. 54.48% of the stock is owned by hedge funds and other institutional investors.

BlackBerry Stock Performance

The company has a market cap of $2.70 billion, a PE ratio of -458.50 and a beta of 1.51. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.20 and a current ratio of 2.20. The stock's 50-day simple moving average is $3.95 and its 200 day simple moving average is $3.90.

BlackBerry (NYSE:BB - Get Free Report) last posted its earnings results on Thursday, September 25th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.03. BlackBerry had a negative net margin of 0.60% and a positive return on equity of 6.07%. The firm had revenue of $130.96 million during the quarter, compared to the consensus estimate of $122.03 million. BlackBerry's revenue for the quarter was down 10.6% compared to the same quarter last year. BlackBerry has set its Q3 2026 guidance at 0.020-0.040 EPS. FY 2026 guidance at 0.110-0.15 EPS. As a group, equities analysts anticipate that BlackBerry Limited will post -0.03 EPS for the current year.

BlackBerry Company Profile

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions.

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