Zacks Investment Research downgraded shares of BlackBerry (NYSE:BB) from a strong-buy rating to a hold rating in a research note released on Monday.
According to Zacks, “BlackBerry delivers one of the most secure end-to-end mobile enterprise solutions in the market through a broad portfolio of products and services. With a holistic growth model, focusing both on organic and inorganic investments, the company aims to extend its market leadership in the enterprise mobility segment. Robust software sales are aiding BlackBerry immensely while growth in its cybersecurity business with opportune acquisitions remains a huge positive. BlackBerry has also provided bullish outlook for software and service revenues in fiscal 2019. However, the stock has underperformed the industry in the past six months on an average. High technological obsolescence remains a challenge for BlackBerry, increasing its operating costs through continuous R&D efforts for new product introductions to fend off competition. Adverse foreign currency translation and high debt levels remain other headwinds for the company.”
Other equities analysts also recently issued reports about the stock. CIBC raised shares of BlackBerry from a neutral rating to an outperform rating and set a $14.00 price target for the company in a research note on Monday, November 19th. They noted that the move was a valuation call. Canaccord Genuity reissued a hold rating on shares of BlackBerry in a research note on Friday, November 16th. Finally, Raymond James increased their price target on shares of BlackBerry from $11.00 to $11.50 and gave the stock a market perform rating in a research note on Monday, October 1st. Seven research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $12.13.
BB stock opened at $8.26 on Monday. BlackBerry has a 1 year low of $8.06 and a 1 year high of $14.55. The stock has a market capitalization of $4.55 billion, a P/E ratio of 165.20 and a beta of 1.80. The company has a quick ratio of 6.43, a current ratio of 6.43 and a debt-to-equity ratio of 0.30.
BlackBerry (NYSE:BB) last released its quarterly earnings results on Friday, September 28th. The company reported $0.04 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.01 by $0.03. BlackBerry had a negative net margin of 34.24% and a positive return on equity of 0.61%. The company had revenue of $214.00 million during the quarter, compared to the consensus estimate of $209.41 million. During the same period in the prior year, the firm earned $0.05 earnings per share. BlackBerry’s revenue was down 14.1% on a year-over-year basis.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Cornerstone Wealth Management LLC bought a new position in shares of BlackBerry during the second quarter valued at approximately $500,000. Robotti Robert bought a new position in shares of BlackBerry during the third quarter valued at approximately $114,000. Gabelli Funds LLC bought a new position in shares of BlackBerry during the third quarter valued at approximately $114,000. US Bancorp DE bought a new position in shares of BlackBerry during the third quarter valued at approximately $119,000. Finally, Rehmann Capital Advisory Group bought a new position in shares of BlackBerry during the third quarter valued at approximately $928,000. 53.72% of the stock is owned by institutional investors and hedge funds.
BlackBerry Company Profile
BlackBerry Limited operates as an enterprise software and services company focused on securing and managing endpoints in the Internet of Things. It offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a secure and networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting; and BBM Enterprise, an enterprise-grade secure instant messaging solution, as well as Communications Platform as a Service.
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