BlackBerry (NYSE:BB) Shares Gap Down – Should You Sell?

BlackBerry Limited (NYSE:BB) shares gapped down prior to trading on Wednesday . The stock had previously closed at $3.73, but opened at $3.07. BlackBerry shares last traded at $3.37, with a volume of 6,775,151 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on BB. TD Securities upgraded shares of BlackBerry from a “hold” rating to a “buy” rating and boosted their target price for the stock from $3.25 to $4.00 in a report on Friday, December 20th. Canaccord Genuity Group upped their target price on BlackBerry from $3.00 to $4.75 and gave the company a “hold” rating in a report on Tuesday, March 11th. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $4.00 price objective on shares of BlackBerry in a research note on Tuesday. TD Cowen raised shares of BlackBerry from a “hold” rating to a “buy” rating and lifted their target price for the stock from $3.25 to $4.00 in a research report on Friday, December 20th. Finally, Robert W. Baird upped their price target on shares of BlackBerry from $3.00 to $3.50 and gave the company a “neutral” rating in a research report on Friday, December 20th. Six analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, BlackBerry currently has a consensus rating of “Moderate Buy” and a consensus target price of $3.91.

BlackBerry Trading Down 11.7 %

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.37 and a current ratio of 1.37. The stock has a market cap of $1.96 billion, a price-to-earnings ratio of -14.84 and a beta of 1.27. The company’s 50 day simple moving average is $4.69 and its two-hundred day simple moving average is $3.50.

BlackBerry (NYSE:BB) last posted its quarterly earnings results on Wednesday, April 2nd. The company reported $0.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.01. BlackBerry had a negative net margin of 21.16% and a negative return on equity of 2.02%. The business had revenue of $141.70 million for the quarter, compared to the consensus estimate of $137.56 million. BlackBerry’s revenue for the quarter was down 7.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.03 earnings per share. Research analysts expect that BlackBerry Limited will post -0.03 EPS for the current fiscal year.

Insider Activity

In other news, CEO John Joseph Giamatteo sold 155,815 shares of the stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $3.68, for a total transaction of $573,399.20. Following the transaction, the chief executive officer now owns 385,552 shares of the company’s stock, valued at approximately $1,418,831.36. This represents a 28.78 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Jay P. Chai sold 24,425 shares of the firm’s stock in a transaction on Friday, January 24th. The stock was sold at an average price of $4.19, for a total transaction of $102,340.75. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 244,221 shares of company stock worth $925,655. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC raised its stake in shares of BlackBerry by 63.9% in the fourth quarter. Tower Research Capital LLC TRC now owns 9,773 shares of the company’s stock valued at $37,000 after purchasing an additional 3,811 shares in the last quarter. Masso Torrence Wealth Management Inc. bought a new stake in shares of BlackBerry during the fourth quarter valued at approximately $38,000. Mindset Wealth Management LLC bought a new position in BlackBerry in the 4th quarter valued at $38,000. Quadrant Capital Group LLC increased its stake in shares of BlackBerry by 100.3% in the 4th quarter. Quadrant Capital Group LLC now owns 10,000 shares of the company’s stock valued at $38,000 after buying an additional 5,008 shares during the period. Finally, Sanctuary Advisors LLC bought a new stake in shares of BlackBerry during the fourth quarter worth $40,000. Institutional investors and hedge funds own 54.48% of the company’s stock.

BlackBerry Company Profile

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions.