BlackBerry (NYSE:BB) Shares Surge 8.8% - Is It Still a Good Investment?

BlackBerry Limited (NYSE:BB) experienced a significant jump in its share price, rising by 8.8% on Wednesday. The stock reached an intraday high of $5.72 and ended the day at $5.74. During trading, a total of 14,983,071 shares were exchanged, which is a decrease of 31% compared to the average trading volume of 21,768,123 shares. The previous closing price was $5.27.

Wall Street Analyst Insights

Several analysts have recently evaluated BlackBerry shares. TD Cowen upgraded the stock from a "hold" to a "buy" rating and increased their target price from $3.25 to $4.00. Similarly, CIBC adjusted their price target from $3.50 to $3.60, giving the stock an "outperform" rating. Royal Bank of Canada made a similar adjustment, raising their target from $3.25 to $4.00 while maintaining a "sector perform" rating.

Additionally, Robert W. Baird increased their target from $3.00 to $3.50, assigning a "neutral" rating. Canaccord Genuity also raised their price objective from $2.80 to $3.00 with a "hold" rating. Currently, six analysts rate BlackBerry as a hold, three as a buy, and one as a strong buy. According to MarketBeat.com, the consensus rating for BlackBerry is a "Moderate Buy" with an average target price of $3.69.

BlackBerry's Stock Performance Overview

As of now, BlackBerry holds a current ratio of 1.37, a quick ratio of 1.37, and a debt-to-equity ratio of 0.27. The fifty-day moving average price sits at $4.07, while the two-hundred-day moving average is $2.98. The company's market capitalization is approximately $3.36 billion with a PE ratio of -25.80, and its beta is 1.31.

BlackBerry recently reported its quarterly earnings on December 19, showing earnings per share (EPS) of $0.02, surpassing analysts' expectations of a loss of $0.01. Despite this, the company recorded a negative net margin of 21.16% and a return on equity of -2.02%. Revenue for the quarter came in at $143 million, slightly lower than the forecast of $144.84 million and a 5.9% decline compared to the previous year. Analysts believe that BlackBerry Limited will report an EPS of -0.03 for the current year.

Insider Trading Activity

In related news, CAO Jay P. Chai sold 24,425 shares of BlackBerry on January 24 at an average price of $4.19, totaling $102,340.75. CEO John Joseph Giamatteo also sold 155,815 shares at an average price of $3.68, which amounted to $573,399.20. After this sale, the CEO still holds 385,552 shares of the company, valued at around $1,418,831.36, marking a 28.78% reduction in their ownership. Over the last 90 days, insiders sold 244,221 shares worth $925,655, and currently, insiders hold 0.34% of the stock.

Institutional Investors' Involvement

Institutional investors have recently altered their positions in BlackBerry. Barclays PLC increased its stake by 60.2% in the third quarter, owning now 249,218 shares valued at $652,000 after acquiring an additional 93,651 shares. Milestone Asset Management LLC bought new shares worth $557,000 in the fourth quarter. Intact Investment Management Inc. raised its holdings by 25.7%, owning 1,439,240 shares valued at $3,789,000 after purchasing an additional 294,250 shares. Capstone Investment Advisors LLC and State Street Corp also adjusted their stakes. Currently, institutional investors and hedge funds own 54.48% of the stock.

About BlackBerry

BlackBerry Limited is known for providing intelligent security software and services to enterprises and governments worldwide. The company operates in three primary segments: Cybersecurity, IoT, and Licensing and Other. Their product offerings include integrated endpoint security solutions, managed detection and response services, secure messaging solutions, and unified endpoint management solutions.

BlackBerry, Stock, Investment