BlackBerry (NYSE:BB) Shares Climb 5.7% - What's Next?

Key Points

• BlackBerry shares rose 5.7% to $9.595 during mid-day trading, although volume was 65% below the average session level.
• Analyst sentiment remains mixed: CIBC raised its price target to $13 and Wall Street Zen upgraded the stock to “buy,” but the overall consensus is still “hold” with a $9.86 target.
• BlackBerry exceeded quarterly expectations, reporting $0.07 in EPS and $166.56 million in revenue, with revenue up 26% year over year; however, insiders sold 384,402 shares worth about $4.1 million during the last quarter.

BlackBerry Limited (NYSE:BB - Get Free Report)'s share price traded up 5.7% during mid-day trading on Tuesday. The company traded as high as $9.72 and last traded at $9.5950. Approximately 6,511,315 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 18,529,828 shares. The stock had previously closed at $9.08.

Analyst Upgrades and Downgrades

Several brokerages recently commented on BB. Canadian Imperial Bank of Commerce boosted their price target on BlackBerry from $10.00 to $13.00 and gave the stock an "outperformer" rating in a research report on Friday, June 26th. Zacks Research cut BlackBerry from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. TD Securities reiterated a "hold" rating and set a $8.00 price target on shares of BlackBerry in a research report on Friday, June 26th. Wall Street Zen raised BlackBerry from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $9.00 target price on shares of BlackBerry in a research note on Monday, September 21st. Two research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, BlackBerry has an average rating of "Hold" and a consensus price target of $9.86.

BlackBerry Stock Performance

The firm's fifty day moving average price is $8.33 and its 200-day moving average price is $7.64. The firm has a market cap of $5.61 billion, a price-to-earnings ratio of 79.54 and a beta of 2.20. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 0.25.

BlackBerry (NYSE:BB - Get Free Report) last posted its earnings results on Thursday, September 24th. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.03. BlackBerry had a return on equity of 13.71% and a net margin of 13.09%.The business had revenue of $166.56 million for the quarter, compared to analysts' expectations of $144.22 million. During the same quarter in the previous year, the firm earned $0.04 earnings per share. The business's revenue 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. Analysts expect that BlackBerry Limited will post 0.17 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Jennifer Armstrong-Owen sold 3,296 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $10.92, for a total transaction of $35,992.32. Following the completion of the sale, the senior vice president directly owned 106,091 shares of the company's stock, valued at $1,158,513.72. This trade represents a 3.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Philip S. Kurtz sold 30,000 shares of the firm's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $9.14, for a total transaction of $274,200.00. Following the completion of the sale, the insider owned 65,158 shares of the company's stock, valued at $595,544.12. This trade represents a 31.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 384,402 shares of company stock valued at $4,117,199 in the last quarter. Corporate insiders own 0.51% of the company's stock.

Institutional Trading of BlackBerry

Institutional investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC purchased a new stake in shares of BlackBerry during the 2nd quarter worth $31,000. CoreCap Advisors LLC acquired a new position in shares of BlackBerry in the second quarter valued at approximately $31,000. Elevation Wealth Partners LLC purchased a new position in shares of BlackBerry during the 2nd quarter worth $32,000. Global Retirement Partners LLC purchased a new position in BlackBerry during the second quarter worth about $50,000. Finally, Nykredit A S purchased a new position in shares of BlackBerry during the 2nd quarter worth about $111,000. 54.48% of the stock is currently owned by hedge funds and other institutional investors.

BlackBerry Company Profile

BlackBerry Limited is a Canadian technology company that provides cybersecurity and Internet of Things (IoT) software. Its cybersecurity offerings support endpoint protection, threat detection and response, secure communications, identity management, and unified endpoint management for businesses and government organizations.

Through its QNX business, BlackBerry supplies secure, safety-certified real-time operating systems and embedded software for automotive systems and other connected devices.

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