BlackSky Technology (NYSE:BKSY) Shares Gap Down - Should You Sell?

Key Points

• BlackSky Technology Inc. shares gapped down from a closing price of $20.97 to $19.74 at the market open, reflecting potential investor concerns.
• Several research firms have updated their ratings, with Canaccord Genuity cutting its price target to $27.00, while HC Wainwright and Lake Street Capital increased theirs to $28.00, maintaining a "buy" rating.
• CEO Brian E. O'toole and CAO Christiana L. Lin recently sold shares of the company, collectively decreasing insider ownership, which could raise flags for investors regarding future confidence in the company.

BlackSky Technology Inc. (NYSE:BKSY - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $20.97, but opened at $19.74. BlackSky Technology shares last traded at $19.64, with a volume of 423,423 shares trading hands.

Analyst Ratings Changes

Several research firms recently issued reports on BKSY. Canaccord Genuity Group cut their target price on BlackSky Technology from $28.00 to $27.00 and set a "buy" rating on the stock in a research note on Tuesday, July 22nd. HC Wainwright raised their target price on BlackSky Technology from $20.00 to $28.00 and gave the stock a "buy" rating in a research note on Monday, July 21st. Lake Street Capital raised their target price on BlackSky Technology from $18.00 to $28.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Finally, Wall Street Zen cut BlackSky Technology from a "hold" rating to a "strong sell" rating in a research note on Saturday, August 9th. Six equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $23.50.

BlackSky Technology Stock Performance

The company has a 50-day simple moving average of $18.70 and a two-hundred day simple moving average of $14.22. The company has a debt-to-equity ratio of 1.35, a quick ratio of 3.71 and a current ratio of 3.71. The firm has a market capitalization of $714.26 million, a P/E ratio of -5.96 and a beta of 2.15.

BlackSky Technology (NYSE:BKSY - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.52) earnings per share for the quarter, missing the consensus estimate of ($0.49) by ($0.03). The firm had revenue of $22.20 million for the quarter, compared to the consensus estimate of $22.17 million. BlackSky Technology had a negative net margin of 82.04% and a negative return on equity of 52.27%. BlackSky Technology has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that BlackSky Technology Inc. will post -2.28 EPS for the current year.

Insider Activity

In other news, CEO Brian E. O'toole sold 33,292 shares of BlackSky Technology stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $17.45, for a total transaction of $580,945.40. Following the completion of the transaction, the chief executive officer directly owned 750,164 shares in the company, valued at approximately $13,090,361.80. This trade represents a 4.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Christiana L. Lin sold 24,036 shares of BlackSky Technology stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $17.45, for a total transaction of $419,428.20. Following the transaction, the chief accounting officer owned 402,652 shares of the company's stock, valued at $7,026,277.40. The trade was a 5.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 89,694 shares of company stock worth $1,565,160. Insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On BlackSky Technology

A number of hedge funds have recently added to or reduced their stakes in BKSY. Nuveen LLC purchased a new position in BlackSky Technology in the 1st quarter worth approximately $9,582,000. Goldman Sachs Group Inc. raised its holdings in BlackSky Technology by 343.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 557,729 shares of the company's stock worth $4,311,000 after acquiring an additional 432,023 shares during the last quarter. Jump Financial LLC grew its position in BlackSky Technology by 128.2% in the 2nd quarter. Jump Financial LLC now owns 480,048 shares of the company's stock worth $9,879,000 after purchasing an additional 269,700 shares during the period. Cubist Systematic Strategies LLC bought a new stake in BlackSky Technology in the 1st quarter worth approximately $1,728,000. Finally, Invesco Ltd. grew its position in BlackSky Technology by 94.9% in the 2nd quarter. Invesco Ltd. now owns 423,845 shares of the company's stock worth $8,723,000 after purchasing an additional 206,371 shares during the period. 27.15% of the stock is currently owned by hedge funds and other institutional investors.

BlackSky Technology Company Profile

BlackSky Technology Inc provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally.

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