BlackBerry Limited (BB): A Stock to Consider on Insider Buying

The 12-month median price target for BlackBerry Limited (BB) assigned by the analysts stands at $11, which represents a return potential of 33.17 percent when compared to the closing price of the stock of $8.26 on Thursday, December 06. The lowest price target for the stock is $9 — slightly more than 8.96 percent from BB’s current share price. The stock will probably climb 41.53 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $14.5-month high price target. This represents a whopping 75.54 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 32.68 on daily chart, which may remain a cause for comfort. If the price breaks below $7.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.39 mark may result into a pull-back move towards $8.53 level. The stock is currently hovering around the first support level of $8.09. Below this, the next support is placed in the zone of $7.93. Till the time, the BB stock trades above this level, bulls have nothing to fear.

Shares of BlackBerry Limited (BB) are trading at a P/E ratio of 11.61 times earnings reported for the past 12 months. The industry BB operates in has an average P/E of 55.68. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 5.07 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.62. 76.3 percent is the gross profit margin for BlackBerry Limited and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

On 6th of December, BlackBerry Limited (NYSE:BB) shares ended lower after a volatile session. The shares dropped -0.15 points or -1.78 percent at $8.26 with a heavy trade volume of 5.177 million shares. After opening the session at $8.25, the shares went as high as $8.36 and as low as $8.06, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.48 billion and now has 541.79 million shares outstanding. BlackBerry Limited (BB) stock has lost -11.56 percent of market value in 21 trading days.

In last reported earnings results, BB earned $0.04 per share, better than the $0.01, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $214M, better than the $208M analysts expected. Earnings are estimated to increase by 137.7 percent this year, 9.59 percent next year and continue to increase by -13.93 percent annually for the next 5 years. Investors will get their next glimpse of BB’s Q3 earnings on December 21. Analysts are forecasting revenue to suffer decline of -8.8 percent to $214M in the next fiscal quarter, while earnings are seen soaring by nearly -100 percent to $0 per share. History has shown that shares in BlackBerry Limited have gone up on 4 different earnings reaction days and are predicted to add 0.1 percent when the company reports upcoming earnings.

BB stock has a trailing 3-year beta of 1.82, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.44 a share in the trailing twelve months. The stock’s value has fallen -26.05 percent year to date (YTD) against a decline of -20.12 percent in 12 month’s time. The company’s shares still trade -43.23 percent away from its 1-year high of $14.55 and 0.36 percent up from 52-week low of $8.23. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.