BlackBerry (NYSE:BB) Stock Price Up 5.7% - Here's Why

Key Points

• BlackBerry shares jumped 5.7% to about $8.68 in mid-day trading, with volume below the average session level.
• The company exceeded quarterly expectations, reporting $0.07 in EPS versus $0.04 expected and revenue of $166.56 million, up 26% year over year.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a $9.25 target price, while insiders have sold more than 355,000 shares over the past three months.

BlackBerry Limited (NYSE:BB - Get Free Report)'s share price shot up 5.7% during mid-day trading on Monday. The stock traded as high as $8.70 and last traded at $8.6750. Approximately 15,554,487 shares were traded during mid-day trading, a decline of 16% from the average session volume of 18,472,453 shares. The stock had previously closed at $8.21.

Wall Street Analysts Forecast Growth

BB has been the subject of a number of analyst reports. Zacks Research downgraded shares of BlackBerry from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. TD Securities reissued a "hold" rating and issued a $8.00 price target on shares of BlackBerry in a research report on Friday, June 26th. Stifel Nicolaus began coverage on shares of BlackBerry in a research note on Wednesday, June 24th. They set a "buy" rating and a $12.00 price target for the company. TD lifted their price objective on BlackBerry from $5.00 to $8.00 and gave the company a "hold" rating in a report on Friday, June 26th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $9.00 price objective on shares of BlackBerry in a research note on Monday, September 21st. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $9.25.

BlackBerry Stock Performance

The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 0.25. The stock has a fifty day simple moving average of $8.29 and a 200-day simple moving average of $7.40. The company has a market capitalization of $5.18 billion, a P/E ratio of 73.88 and a beta of 2.23.

BlackBerry (NYSE:BB - Get Free Report) last posted its earnings results on Thursday, September 24th. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.03. The business had revenue of $166.56 million for the quarter, compared to analyst estimates of $144.22 million. BlackBerry had a net margin of 13.09% and a return on equity of 13.71%. The firm's quarterly revenue was up 26.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.04 EPS. BlackBerry has set its FY 2027 guidance at 0.190-0.220 EPS and its Q3 2027 guidance at 0.040-0.050 EPS. Equities analysts forecast that BlackBerry Limited will post 0.14 EPS for the current year.

Insider Activity

In other news, insider Philip S. Kurtz sold 6,414 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $11.07, for a total transaction of $71,002.98. Following the sale, 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 document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John Giamatteo sold 152,012 shares of the firm's stock in a transaction 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 owned 687,246 shares of the company's stock, valued at approximately $7,800,242.10. This trade represents a 18.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 355,858 shares of company stock worth $4,012,270. 0.51% of the stock is currently owned by insiders.

Institutional Investors Weigh In On BlackBerry

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC acquired a new position in shares of BlackBerry during the second quarter worth approximately $31,000. CoreCap Advisors LLC bought a new position in BlackBerry in the 2nd quarter worth approximately $31,000. Elevation Wealth Partners LLC acquired a new position in BlackBerry during the 2nd quarter worth $32,000. Global Retirement Partners LLC acquired a new position in BlackBerry during the 2nd quarter worth $50,000. Finally, Nykredit A S bought a new position in BlackBerry in the 2nd quarter valued at $111,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.