BlackBerry Limited $BB Shares Sold by State Street Corp

Key Points

• State Street reduced its BlackBerry stake by 22.7%: The fund sold 203,631 shares in the second quarter and retained 693,582 shares worth approximately $8.8 million. Institutional investors overall own 54.48% of the company.
• BlackBerry delivered a strong quarter and raised its outlook: Adjusted EPS was $0.07 versus a $0.04 consensus, while revenue increased 26% year over year to $166.56 million. The company cited record QNX automotive software revenue and raised fiscal 2027 revenue guidance to $616 million–$636 million.
• Market sentiment remains cautious despite improved results: Analysts have an average “Hold” rating with a consensus price target of $9.25, while recent insider selling and profit-taking have weighed on the stock after its post-earnings rally.

State Street Corp cut its holdings in shares of BlackBerry Limited (NYSE:BB - Free Report) by 22.7% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 693,582 shares of the company's stock after selling 203,631 shares during the period. State Street Corp owned about 0.12% of BlackBerry worth $8,774,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in BB. CoreCap Advisors LLC acquired a new stake in shares of BlackBerry during the 2nd quarter valued at $31,000. Integrated Wealth Concepts LLC bought a new position in BlackBerry in the 2nd quarter valued at approximately $31,000. Elevation Wealth Partners LLC acquired a new stake in BlackBerry during the 2nd quarter worth approximately $32,000. Wealthfront Advisers LLC bought a new stake in BlackBerry during the 1st quarter worth approximately $34,000. Finally, Bank of New York Mellon Corp acquired a new position in BlackBerry in the 1st quarter valued at approximately $37,000. Institutional investors own 54.48% of the company's stock.

Key Stories Impacting BlackBerry

Here are the key news stories impacting BlackBerry this week:

• Positive Sentiment: Q2 results beat expectations: BlackBerry reported adjusted earnings of $0.07 per share versus a $0.04 consensus estimate. Revenue rose 26% year over year to approximately $163 million-$167 million, well above analyst forecasts. BB Q2 Earnings Top, Sales Up Y/Y on QNX Strength, FY27 Outlook Raised
• Positive Sentiment: QNX remains the key growth driver: The automotive software division posted record quarterly revenue, supported by core automotive demand and new design wins. BlackBerry also announced its first Alloy Kore win, described as the largest design win in QNX history. BlackBerry lifts annual revenue forecast on strength in automotive software business
• Positive Sentiment: Full-year outlook increased: BlackBerry raised fiscal 2027 revenue guidance to $616 million-$636 million, above the $614.1 million consensus, and lifted its EPS range to $0.19-$0.22. Adjusted EBITDA, operating cash flow and GAAP profitability also strengthened. BlackBerry Reports Second Quarter Fiscal Year 2027 Results
• Neutral Sentiment: Investor positioning was unusually bullish: Trading activity included 114,134 BB call options, 63% above average, indicating elevated speculative interest around the earnings announcement.
• Neutral Sentiment: Analyst valuation is mixed: The reported consensus price target is $8.92, only modestly above the recent trading range, suggesting limited near-term upside based on current estimates.
• Negative Sentiment: Profit-taking is offsetting the earnings strength: After an initial post-earnings rally, BB has decreased as traders lock in gains. The reaction suggests expectations for QNX and the raised outlook may already be reflected in the stock, while the next-quarter EPS guidance midpoint is slightly below consensus. BlackBerry Drops 7% as Post-Earnings Rally Unwinds Despite Record QNX Quarter

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on BB shares. Raymond James Financial upped their price target on BlackBerry from $4.75 to $9.50 and gave the company a "market perform" rating in a research report on Friday, June 26th. TD Securities restated a "hold" rating and set a $8.00 price objective on shares of BlackBerry in a research report on Friday, June 26th. Canadian Imperial Bank of Commerce upped their price target on shares of BlackBerry from $10.00 to $13.00 and gave the company an "outperformer" rating in a research report on Friday, June 26th. Zacks Research downgraded shares of BlackBerry from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. Finally, Weiss Ratings lowered BlackBerry from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, August 28th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $9.25.

BlackBerry Stock Performance

NYSE:BB opened at $8.19 on Friday. The company has a market capitalization of $4.80 billion, a P/E ratio of 68.21 and a beta of 2.23. The business has a fifty day simple moving average of $8.29 and a two-hundred day simple moving average of $7.38. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.20 and a quick ratio of 2.20. BlackBerry Limited has a 1 year low of $3.12 and a 1 year high of $13.59.

BlackBerry (NYSE:BB - Get Free Report) last issued its quarterly earnings results on Thursday, September 24th. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of $0.04 by $0.03. BlackBerry had a return on equity of 13.91% and a net margin of 13.09%.The firm had revenue of $166.56 million for the quarter, compared to analysts' expectations of $144.22 million. During the same quarter in the prior year, the firm earned $0.04 EPS. The business's revenue for the quarter was up 26.0% compared to the same quarter last year. BlackBerry has set its FY 2027 guidance at 0.190-0.220 EPS and its Q3 2027 guidance at 0.040-0.050 EPS. On average, analysts expect that BlackBerry Limited will post 0.13 earnings per share for the current year.

Insider Buying and Selling at BlackBerry

In related news, CFO Tim Foote sold 25,878 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $12.39, for a total value of $320,628.42. Following the completion of the transaction, the chief financial officer directly owned 58,372 shares of the company's stock, valued at approximately $723,229.08. This trade represents a 30.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jennifer Armstrong-Owen sold 3,296 shares of BlackBerry stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $10.92, for a total transaction of $35,992.32. Following the completion of the transaction, the senior vice president owned 106,091 shares of the company's stock, valued at $1,158,513.72. This represents a 3.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 355,858 shares of company stock worth $4,012,270 over the last three months. Company insiders own 0.51% of the company's stock.

BlackBerry Profile

BlackBerry Limited is a Canadian software company headquartered in Waterloo, Ontario, that provides cybersecurity and Internet of Things (IoT) solutions to enterprises, governments and other organizations worldwide. Its cybersecurity offerings include endpoint protection, endpoint management, identity and access controls, secure communications, and tools designed to help organizations monitor and respond to cyber threats.

The company's IoT business is built around QNX, a software platform used in automotive systems and other embedded applications.

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