Zacks Investment Research Lowers BlackBerry Limited (BBRY) to Hold
BlackBerry Limited (NASDAQ:BBRY) (TSE:BB) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Shares of BlackBerry have outperformed its industry on a year-to-date basis. The company's decision to focus exclusively on software business seems to be paying off. BlackBerry anticipates profitability (on an adjusted basis) and also expects to generate positive free cash flow in fiscal 2018. In order to strengthen its position in the software business, BlackBerry has recently inked multiple deals as well. The dispute settlement with Qualcomm, earlier this year, is also a huge positive. However, the company's struggles on the top line front raise concerns. With increasing global exposure, BlackBerry faces the risk of adverse foreign exchange fluctuations. Additionally, Brexit and macroeconomic pressures have increased volatility in currency markets and might hurt BlackBerry’s operations. Moreover, the loss of licensing contract with T-Mobile may eventually impact BlackBerry’s sales, given the its expanded network.”
Several other brokerages also recently commented on BBRY. Canaccord Genuity reiterated a “hold” rating and set a $10.00 target price on shares of BlackBerry Limited in a report on Monday. TD Securities raised their target price on BlackBerry Limited from $11.50 to $12.00 and gave the company a “buy” rating in a report on Monday. Vetr downgraded BlackBerry Limited from a “buy” rating to a “hold” rating and set a $10.20 target price on the stock. in a report on Monday. Credit Suisse Group reiterated an “underperform” rating and set a $8.00 target price on shares of BlackBerry Limited in a report on Wednesday, June 21st. Finally, Morgan Stanley dropped their target price on BlackBerry Limited from $10.00 to $7.00 and set an “equal weight” rating on the stock in a report on Wednesday, June 21st. Four analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $9.71.
Shares of BlackBerry Limited (BBRY) traded down 0.09% during mid-day trading on Thursday, reaching $11.07. 2,465,314 shares of the company’s stock were exchanged. BlackBerry Limited has a 52 week low of $6.65 and a 52 week high of $11.74. The stock has a 50 day moving average price of $9.37 and a 200 day moving average price of $9.47. The stock has a market cap of $5.87 billion, a price-to-earnings ratio of 11.45 and a beta of 1.00.
BlackBerry Limited (NASDAQ:BBRY) (TSE:BB) last released its quarterly earnings data on Thursday, September 28th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.06. The business had revenue of $238.00 million for the quarter, compared to analyst estimates of $221.21 million. BlackBerry Limited had a return on equity of 2.70% and a net margin of 49.62%. BlackBerry Limited’s quarterly revenue was down 32.4% compared to the same quarter last year. Equities research analysts predict that BlackBerry Limited will post $0.06 EPS for the current year.
BlackBerry Limited declared that its board has initiated a share buyback plan on Friday, June 23rd that authorizes the company to buyback 31,000,000 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
Large investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC boosted its position in BlackBerry Limited by 35.5% during the 2nd quarter. SG Americas Securities LLC now owns 54,346 shares of the company’s stock valued at $543,000 after purchasing an additional 14,246 shares during the period. CI Investments Inc. acquired a new position in BlackBerry Limited during the 2nd quarter valued at approximately $30,309,000. Bank of America Corp DE boosted its position in BlackBerry Limited by 300.0% during the 1st quarter. Bank of America Corp DE now owns 754,290 shares of the company’s stock valued at $5,847,000 after purchasing an additional 565,739 shares during the period. Quinn Opportunity Partners LLC boosted its position in BlackBerry Limited by 24.8% during the 2nd quarter. Quinn Opportunity Partners LLC now owns 785,735 shares of the company’s stock valued at $7,849,000 after purchasing an additional 156,350 shares during the period. Finally, Tobam acquired a new position in BlackBerry Limited during the 2nd quarter valued at approximately $1,626,000. Institutional investors and hedge funds own 63.32% of the company’s stock.
About BlackBerry Limited
BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services.
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