BlackBerry (NYSE: BB) Stock Outlook: Analyst Upgrades, Insider Selling & Institutional Moves
BlackBerry Limited (NYSE: BB) has recently garnered mixed reactions from analysts and investors, with a Moderate Buy consensus rating from nine research firms, according to MarketBeat. While five analysts recommend holding the stock, three have issued a Buy rating, and one has assigned a Strong Buy. With an average 12-month price target of $3.69, analysts remain divided on BlackBerry’s near-term trajectory.
Analyst Ratings: Recent Price Target Adjustments
Several equity research firms have revised their price targets for BlackBerry in recent months, reflecting cautious optimism about the company’s future:
✔ Robert W. Baird: Raised its target price from $3.00 to $3.50 (Neutral, Dec 20).
✔ Canaccord Genuity Group: Increased from $2.80 to $3.00 (Hold, Dec 20).
✔ Royal Bank of Canada: Lifted its price objective from $3.25 to $4.00 (Sector Perform, Jan 10).
✔ StockNews.com: Upgraded BlackBerry from Sell to Hold (Dec 9).
✔ TD Securities: Upgraded from Hold to Buy, raising its price target from $3.25 to $4.00 (Dec 20).
These revisions suggest growing confidence in BlackBerry’s long-term potential, despite some short-term uncertainties.
Insider Selling: Executives Reduce Stakes in BlackBerry
While analyst ratings have improved, recent insider selling activity has raised questions about internal confidence. Key executives, including CEO John Joseph Giamatteo, have sold a significant number of shares:
🔻 CEO John Joseph Giamatteo: Sold 155,815 shares at $3.68 (Jan 2), reducing his stake by 28.78% to 385,552 shares.
🔻 Mattias Eriksson: Sold 14,475 shares at $3.68, reducing his holdings by 5.71%.
🔻 Total insider selling in the last three months: 244,221 shares valued at $925,655.
Despite the stock’s recent uptrend, the selling activity may signal executive concerns over near-term stock performance.
Institutional Investors: Continued Interest in BlackBerry
While insiders are reducing their holdings, institutional investors remain actively engaged, with several firms increasing their stakes:
✔ Tower Research Capital LLC TRC: Increased holdings by 63.9%, now owning 9,773 shares ($37,000).
✔ Invesco Ltd.: Grew its position by 3.8% to 115,116 shares ($435,000).
✔ Advisory Services Network LLC: Raised its stake by 6.6% to 70,829 shares ($268,000).
✔ Quadrant Capital Group LLC: Doubled its holdings by 100.3% to 10,000 shares ($38,000).
✔ National Bank of Canada FI: Increased holdings by 2.4% to 254,032 shares ($967,000).
Institutional investors collectively own 54.48% of BlackBerry’s shares, indicating continued long-term interest in the stock.
Stock Performance & Financial Metrics
📌 Current Price: $4.91
📌 52-Week Range: $2.01 – $6.24
📌 50-Day Moving Average: $4.44
📌 200-Day Moving Average: $3.15
📌 Market Cap: $2.92 billion
📌 P/E Ratio: -22.30 (indicating losses)
📌 Beta: 1.31 (moderate volatility)
📌 Debt-to-Equity Ratio: 0.27 (manageable debt levels)
Earnings Performance: Positive EPS but Declining Revenue
BlackBerry’s latest earnings report (Dec 19) surprised analysts by reporting a $0.02 EPS, outperforming the consensus estimate of -($0.01). However, revenue declined 5.9% YoY to $143 million, missing expectations of $144.84 million.
📊 Financial Highlights:
✔ EPS: $0.02 (Beat estimates by $0.03)
✔ Revenue: $143M (Down 5.9% YoY)
✔ Return on Equity (ROE): -2.02%
✔ Net Margin: -21.16%
Looking ahead, analysts forecast an EPS of -$0.03 for the current fiscal year, highlighting lingering profitability concerns.
What’s Next for BlackBerry?
With analyst upgrades, institutional interest, and mixed insider activity, BlackBerry’s stock remains a closely watched asset in 2024. The company’s ongoing transformation and focus on cybersecurity, IoT, and enterprise software will play a crucial role in shaping its future performance.
