BlackBerry Limited (NYSE: BB) stock jumped 0.23% on Tuesday to $4.27 against a previous-day closing price of $4.26. With 4.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.89 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $4.3199 whereas the lowest price it dropped to was $4.2000. The 52-week range on BB shows that it touched its highest point at $8.38 and its lowest point at $3.17 during that stretch. It currently has a 1-year price target of $4.95. Beta for the stock currently stands at 1.52.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BB was up-trending over the past week, with a rise of 4.66%, but this was up by 13.87% over a month. Three-month performance dropped to -2.95% while six-month performance fell -27.13%. The stock lost -50.00% in the past year, while it has gained 30.98% so far this year. A look at the trailing 12-month EPS for BB yields -0.16 with Next year EPS estimates of -0.18. For the next quarter, that number is -0.07. This implies an EPS growth rate of 101.10% for this year and 9.50% for next year.
Float and Shares Shorts:
At present, 578.95 million BB shares are outstanding with a float of 570.08 million shares on hand for trading. On Oct 13, 2022, short shares totaled 37.45 million, which was 6.49% higher than short shares on Sep 14, 2022. In addition to Mr. John S. Chen as the firm’s Exec. Chairman & CEO, Mr. Steve Rai serves as its Chief Financial Officer.
Through their ownership of 46.64% of BB’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 26.40% of BB, in contrast to 17.82% held by mutual funds. Shares owned by individuals account for 1.57%. As the largest shareholder in BB with 7.90% of the stake, Hamblin Watsa Investment Counsel holds 45,817,856 shares worth 45,817,856. A second-largest stockholder of BB, PRIMECAP Management Co., holds 37,861,122 shares, controlling over 6.52% of the firm’s shares. FifthDelta Ltd. is the third largest shareholder in BB, holding 31,721,213 shares or 5.47% stake. With a 3.49% stake in BB, the Legal & General UCITS ETF PLC – C is the largest stakeholder. A total of 20,246,986 shares are owned by the mutual fund manager. The Allianz Global Investors Fund – A, which owns about 2.12% of BB stock, is the second-largest Mutual Fund holder. It holds 12,291,985 shares valued at 40.07 million. PRIMECAP Odyssey Aggressive Growt holds 1.87% of the stake in BB, owning 10,859,366 shares worth 35.4 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BB since 10 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BB analysts setting a high price target of $12.00 and a low target of $3.75, the average target price over the next 12 months is $5.83. Based on these targets, BB could surge 181.03% to reach the target high and fall by -12.18% to reach the target low. Reaching the average price target will result in a growth of 36.53% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BB will report FY 2023 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of -$0.20 being high and -$0.25 being low. For BB, this leads to a yearly average estimate of -$0.22. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. BlackBerry Limited surprised analysts by $0.03 when it reported -$0.05 EPS against a consensus estimate of -$0.08. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.05 and the low estimate is -$0.11. The average estimate for the next quarter is thus -$0.07.