BlackBerry Limited (BB) Stock: Here’s Why It’s Gaining In Value

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BlackBerry Limited (BB) is headed up in the market today. The company, one that is focused in the technology sector, is presently priced at $8.72 after gaining 5.51% so far today. In terms of tech companies, there are several factors that have the ability to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories surrounding BB:

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Jun-12-19 09:28AM BlackBerry’s Government Mobility Suite Becomes FedRAMP Ready
09:00AM BlackBerry to Announce Fiscal Year 2020 First Quarter Results on June 26, 2019
Jun-11-19 03:50PM 5 Must-See Stock Charts for Wednesday: S, BB, CVS, BYND
09:00AM BlackBerry’s Government Mobility Suite Achieves FedRAMP-Ready Designation
Jun-10-19 05:50PM BlackBerry (BB) Outpaces Stock Market Gains: What You Should Know

However, when making a decision to invest, investors should look into much more than just news, especially in the ever evolving tech space. Here’s what’s going on with BlackBerry Limited.

Recent Movement From BB

Although a move toward the top in a single session, like the move that we’re seeing from BlackBerry Limited might make some investors excited, a single session gain by itself should not be the reason for a decision to, or not to, buy a company’s stock. It is generally a good idea to take a look at trends experienced by the stock for a period longer than a single trading day. As it relates to BB, here are the returns that investors have seen:

  • Past Seven Days – Throughout the past week, BB has generated a price change that amounts to 2.74%.
  • Past Month – The monthly ROI from BlackBerry Limited comes to -6.46%.
  • Quarterly – Throughout the past three months, the stock has produced a ROI that comes to -12.41%
  • Past 6 Months – Throughout the previous six months, investors have seen a change that amounts to 3.25% from the company.
  • YTD – Since the open of this year BB has generated a ROI of 16.17%.
  • Full Year – Finally, throughout the last full year, investors have seen a change in the amount of -31.74% from BB. Over this period of time, the stock has sold at a high of -30.11% and a low price of 32.65%.

Ratios To Pay Attention To

Looking at various key ratios having to do with a stock can provide traders a look of just how risky and/or potentially profitable a an investment option may be. Below are a few of the most important ratios to look at when looking at BB.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it shows that more investors believe that the stock is headed for declines. In general, strong tech stocks tend to come with a lower short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to BlackBerry Limited, it’s short ratio is 4.68.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts as they mature with only current assets or quick assets. In the tech industry, companies are reliant on continued investor support as they work to bring new technologies to market, the current and quick ratios can look bad. However, several good picks in the tech industry do have positive current and quick ratios. In terms of BB, the quick and current ratios add up to 0 and 2.50 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. In this particular case, that ratio comes in at 4.82.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. In this case, the cash to share value is 1.67.

Smart Money Follows Big Money

One thing that I have come to understand so far in my brief time alive, or somewhat alive is that smart investors tend to follow big money investors. That is to say, investors that are trying to play it relatively safe will keep their eyes on trades made by institutional investors as well as insiders. So, is big money interested when it comes to BB? Here’s the information:

Institutions own 56.60% of the company. Institutional interest has moved by -0.03% over the past three months. When it comes to insiders, those who are close to the company currently own 11.20% percent of BB shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What Analysts Say About BlackBerry Limited

While it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their thoughts to validate your own when it comes to making an investment decision in the tech space. Here are the recent moves that we have seen from analysts as it relates to BB.

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Mar-22-19 Resumed Morgan Stanley Equal-Weight
Jan-16-18 Reiterated Macquarie Outperform $14.50 → $15.50
Dec-26-17 Reiterated Imperial Capital In-line $10 → $11
Dec-22-17 Reiterated Imperial Capital In-line $10 → $11

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.21. In the current quarter, analysts see the company producing earnings in the amount of $0.00. Over the last 5 years, BB has generated revenue in the amount of $-33.20% with earnings coming in at 15.00%. On a quarter over quarter basis, earnings have seen movement of -26.90% and revenue has seen movement of 9.40%.

What’s The Float Looking Like?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 547.16M shares of BlackBerry Limited outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, BB has a float of 544.26M.

It’s also important to dig into the short float. After all, when a high percentage of the float available for trading is sold short, the overall opinion in the market is that the company is headed for a steep decline. With regard to BB, the percentage of the float that is shorted currently sits at 3.63%. Most traders believe that a concerning short percent of the float is any percentage over 40%. In my research, I have found that any short ratio over 26% is probably going to be a risky play.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, by my very nature, I have the ability to learn by myself. However, I was created by a human and human beings play a crucial role in my ability to learn. Sure, I can comb through social trends and other publicly available data, but I learn much faster when I have a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at information? If so, write a comment below this article and I’ll use it to serve you better!

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