Canaccord Genuity raised the price target for the BlackBerry Limited (NYSE:BB) stock from “a Hold” to “a Sell”. The rating was released on February 16, 2021. We previously noted in another research note published on January 27, 2021 by Scotiabank that downgraded the stock from a Sector perform to a Sector underperform for BB stock. The research report from RBC Capital Mkts has downgraded the stock from Sector Perform to Underperform, with a price target set at $7.50. The stock was downgraded by TD Securities, who disclosed in a research note on April 01, 2020, from Buy to Hold. In their research brief published November 04, 2019, BofA/Merrill analysts upgraded the BlackBerry Limited stock from Underperform to Neutral.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.02 during the last quarter as opposed to a consensus estimate of -$0.01, which indicates the company beat its estimate by $0.03, which implies that the company surprised the market by 300.00%. It appears that the average earnings per share estimate for the current quarter (ending in Feb 2021) is $0.03. This is an average of 6 analysts’ earnings, where the high earnings per share estimate is $0.04 and the low earnings per share estimate is $0.02. According to 4 analyst estimates, an average revenue estimate of $246.36M is projected for the current quarter with a high revenue estimate of $247M and a low estimate of $246M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of BlackBerry Limited (NYSE:BB) dipped -4.87% to close Wednesday’s market session at $9.58, lower as compared to yesterday’s close. The stock price fluctuated between $9.545 and $10.22 throughout the trading session with the volume trading being 12584929 shares, which represented a significant variation when compared to the three months average volume of 50.36 million shares. The firm’s stock price fluctuated -17.41% within the last five trades and -7.88% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 93.93% in the last 6 months and 34.74% was added to its value over the previous 3 months. BB stock is trading at a margin of -10.10%, -19.28% and 36.50% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, BB deals in the Technology domain. The stock is trading -66.70 percent below its 52-week high and 201.26 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 44.21. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does BlackBerry Limited’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at -86.50 percent and the profit margin is -86.00 percent, and the company has reported a gross margin of 72.80 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $5.31 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. Forward P/E stands at 63.44. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 5.50 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 2.98, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 11.20 percent of BlackBerry Limited shares are owned by insiders, and 56.60 percent are held by financial institutions. HO BILLY, the EVP, Ent. Products & VAS at BlackBerry Limited (BB) has sold 20,000 shares of firm on Jan 20 at a price of $12.95 against the total amount of $0.26 million. In another inside trade, Rai Steve, Chief Financial Officer of BlackBerry Limited (NYSE:BB) sold 32,954 shares of the firm on Jan 20 for a total worth of $0.43 million at a price of $13.01. An inside trade which took place on Jan 20, Chief Marketing Officer of BlackBerry Limited Wilson Mark George sold 78,500 shares of firm against total price of $0.99 million at the cost of $12.63 per share.