BlackBerry Limited (BB) expanding its growth trajectory ahead

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.

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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.

Institutional Ownership:

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.

Analysts Ratings:

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.

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