BlackSky Technology (NYSE:BKSY) Shares Gap Down Following Weak Earnings

Key Points

• EPS miss and sharp sell-off: BlackSky reported EPS of ($0.82) vs. consensus ($0.37), and the stock gapped down from $40.51 to open $36.98 and traded down roughly 25% to about $30.22 on heavy volume.
• Mixed analyst views: the consensus rating is a "Moderate Buy" with an average target of $27.40, while individual notes range from Weiss Ratings' "sell (d-)" to HC Wainwright's $42 "buy" and Canaccord cutting its target to $26.
• Weak fundamentals and leverage: BlackSky shows a negative net margin (-65.93%) and ROE (-53.94%), a debt-to-equity of 2.04, a market cap of about $1.13 billion, and a negative P/E.

BlackSky Technology Inc. (NYSE:BKSY - Get Free Report)'s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $40.51, but opened at $36.98. BlackSky Technology shares last traded at $30.2160, with a volume of 1,463,802 shares trading hands.

The company reported ($0.82) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.45). BlackSky Technology had a negative net margin of 65.93% and a negative return on equity of 53.94%.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Wall Street Zen raised shares of BlackSky Technology from a "strong sell" rating to a "hold" rating in a report on Saturday, March 21st. Canaccord Genuity Group dropped their price target on shares of BlackSky Technology from $27.00 to $26.00 and set a "buy" rating on the stock in a research note on Friday, February 27th. HC Wainwright reissued a "buy" rating and issued a $42.00 price target on shares of BlackSky Technology in a research note on Friday, February 27th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of BlackSky Technology in a research note on Monday, April 20th. Five research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $27.40.

Institutional Trading of BlackSky Technology

A number of institutional investors and hedge funds have recently bought and sold shares of BKSY. Quarry LP purchased a new stake in shares of BlackSky Technology during the fourth quarter worth approximately $26,000. Strive Financial Group LLC purchased a new stake in shares of BlackSky Technology during the fourth quarter worth approximately $26,000. Global Retirement Partners LLC acquired a new position in BlackSky Technology in the fourth quarter valued at approximately $28,000. Wexford Capital LP acquired a new position in BlackSky Technology in the third quarter valued at approximately $30,000. Finally, IFP Advisors Inc grew its position in shares of BlackSky Technology by 57.9% during the third quarter. IFP Advisors Inc now owns 2,253 shares of the company's stock worth $45,000 after acquiring an additional 826 shares during the last quarter. 27.15% of the stock is currently owned by hedge funds and other institutional investors.

BlackSky Technology Trading Down 25.0%

The company has a debt-to-equity ratio of 2.04, a current ratio of 3.48 and a quick ratio of 3.37. The firm has a market capitalization of $1.13 billion, a PE ratio of -14.11 and a beta of 2.44. The business's 50-day moving average price is $28.99 and its 200-day moving average price is $23.68.

BlackSky Technology Company Profile

BlackSky Technology, Inc operates Earth observation and geospatial intelligence services through a constellation of small satellites and an analytics platform. The company collects and processes high-revisit satellite imagery, enabling near-real-time monitoring of global events and locations. Clients across government, defense and commercial sectors leverage BlackSky’s imagery and data to support decision-making in areas such as supply chain monitoring, humanitarian aid, infrastructure management and security operations.

Founded in 2014 as part of Spaceflight Industries, BlackSky has grown its satellite constellation and analytics capabilities to deliver satellite imagery with high revisit rates and rapid tasking.

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