BlackBerry (NYSE:BB) Shares Gap Up - What's Next?

Key Points

• BlackBerry shares gapped higher, opening at $9.14 versus a prior close of $8.53, before trading around $8.79 on heavy volume.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $8.92; individual targets range from $8.00 to $10.30.
• BlackBerry exceeded quarterly expectations, reporting $0.04 in EPS and $152.9 million in revenue, up 25.6% year over year, although insiders sold 355,858 shares worth about $4.0 million over the past 90 days.

BlackBerry Limited (NYSE:BB - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $8.53, but opened at $9.14. BlackBerry shares last traded at $8.7870, with a volume of 7,492,328 shares traded.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on BB shares. Royal Bank Of Canada reiterated a "sector perform" rating and set a $9.00 price objective on shares of BlackBerry in a research report on Monday. Raymond James Financial upped their price target on shares of BlackBerry from $4.75 to $9.50 and gave the company a "market perform" rating in a research report on Friday, June 26th. Zacks Research downgraded BlackBerry from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Canaccord Genuity Group lifted their price objective on BlackBerry from $8.20 to $10.30 and gave the stock a "hold" rating in a research report on Friday, June 26th. Finally, TD Securities reissued a "hold" rating and issued a $8.00 price objective on shares of BlackBerry in a research note on Friday, June 26th. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $8.92.

BlackBerry Stock Performance

The firm has a market capitalization of $5.10 billion, a P/E ratio of 96.84 and a beta of 2.23. The company's 50 day moving average is $8.41 and its 200-day moving average is $7.26. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 0.26.

BlackBerry (NYSE:BB - Get Free Report) last posted its quarterly earnings results on Thursday, June 25th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.01. BlackBerry had a net margin of 10.31% and a return on equity of 11.66%. The firm had revenue of $152.90 million during the quarter, compared to the consensus estimate of $136.10 million. During the same period in the previous year, the firm posted $0.02 earnings per share. The business's revenue was up 25.6% compared to the same quarter last year. BlackBerry has set its FY 2027 guidance at 0.160-0.200 EPS and its Q2 2027 guidance at 0.030-0.040 EPS. As a group, equities analysts anticipate that BlackBerry Limited will post 0.13 EPS for the current year.

Insider Transactions at BlackBerry

In other BlackBerry news, insider Philip Kurtz sold 6,414 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $11.07, for a total value of $71,002.98. Following the transaction, the insider owned 125,158 shares in the company, valued at approximately $1,385,499.06. This represents a 4.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO John Giamatteo sold 152,012 shares of the firm's stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $11.35, for a total value of $1,725,336.20. Following the completion of the sale, the chief executive officer directly owned 687,246 shares of the company's stock, valued at $7,800,242.10. This trade represents a 18.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 355,858 shares of company stock valued at $4,012,270 in the last 90 days. Corporate insiders own 0.51% of the company's stock.

Institutional Trading of BlackBerry

Several institutional investors and hedge funds have recently made changes to their positions in the company. V2 Financial group LLC boosted its position in shares of BlackBerry by 6.8% during the first quarter. V2 Financial group LLC now owns 32,100 shares of the company's stock worth $104,000 after buying an additional 2,050 shares during the period. Integrated Wealth Concepts LLC acquired a new position in BlackBerry during the 2nd quarter worth about $31,000. CoreCap Advisors LLC acquired a new position in BlackBerry in the 2nd quarter valued at about $31,000. Elevation Wealth Partners LLC acquired a new position in shares of BlackBerry in the second quarter valued at approximately $32,000. Finally, Global Retirement Partners LLC purchased a new stake in BlackBerry during the 2nd quarter worth about $50,000. Hedge funds and other institutional investors own 54.48% of the company's stock.

BlackBerry Company 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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