BlackBerry Limited (NYSE:BB) stock gets a downgrade at RBC, BB Rises Again, Gets Lift From Expanded Baidu Partnership

shares of BlackBerry Limited (NYSE:BB) reached at $18.03 price level during last trade its distance from 20 days simple moving average was 112.77%, and its distance from 50 days simple moving average was 142.04% while it has a distance of 232.45% from the 200 days simple moving average.

RBC Capital Markets analyst Paul Treiber downgraded shares of BlackBerry Ltd. to underperform from sector perform Tuesday, citing a big recent rally for the shares amid little change in the prospects for the company’s unified endpoint management (UEM) or Cylance security businesses. “BlackBerry is now trading at multi-year highs and above peers,” Treiber wrote, following a 207% rally since the end of November versus a 6% rise for the S&P 500  over that span. He said that BlackBerry reported its fiscal third-quarter results in December, showing a drop in dollar-based net revenue retention. Treiber also wrote that the “probability of an unannounced IP licensing gain appears low.” BlackBerry sold 90 patents to Huawei and struck a patent-licensing settlement with Facebook Inc.  which Treiber called “positive” events, though he argued that “the magnitude of the potential one-time gain is likely to be smaller than the ~$7B increase in the company’s market cap.” A Dec. 15 court filing suggests that the Facebook arrangement was reached prior to the third quarter and might already be reflected in the company’s outlook, he said. Treiber kept his $7.50 price target intact on BlackBerry shares, which closed Monday at $18.03 after a 28% rally. The stock is up another 11% in premarket trading Tuesday.

BlackBerry  (BB) – Get Report shares jumped another 18% on Tuesday, adding to the 28% gain they registered on Monday, after the company announced an expanded partnership with Baidu  (BIDU) – Get Report that will see it continue working on automated high-definition mapping software that Baidu uses in its autonomous driving technology.

Shares of the Canadian software company once known for its QWERTY keyboard-enabled mobile phones and even before that, pagers, were up 17.3% at $21.15 in premarket trading after revealing the expanded deal with Baidu, which broadens the company’s use of BlackBerry’s operating system in its “Apollo” autonomous driving open platform.

Under the expanded partnership, Baidu’s high-definition map will be integrated with BlackBerry’s QNX Neutrino real-time operating system. The integrated system will be mass-produced and available on Guangzhou Automobile Group electric vehicle arm’s upcoming GAC New Energy Aion models, Baidu said in a statement.

“The BlackBerry QNX software performs well in functional safety, network security and reliability, while Baidu has achieved long-term development in artificial intelligence and deep learning,” Wang Yunpeng, Senior Director of Technology Department of Baidu’s Intelligent Driving Group, said in the statement.

Liquidity:

The stock has a market cap of $9.25B with 562.44M shares outstanding, of which the float was 555.18M shares. Analysts consider this stock active, since it switched Trading volume reached 363,829,088 shares as compared to its average volume of 33.94M shares.

The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.

But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. BB’s relative volume was 12.79.

Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.

BlackBerry Limited has an average true range (ATR) of 1.31. Other technical indicators are worth considering in assessing the prospects for EQT. BB’s price to sales ratio for trailing twelve months was 9.58 and price to book ratio for most recent quarter was 5.62, whereas price to cash per share for the most recent quarter was 13.72.

The Company’s price to free cash flow for trailing twelve months was 165.15. Its quick ratio for most recent quarter was 2.30. Analysts mean recommendation for the stock was 3.20. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

BlackBerry Limited‘s shares owned by insiders remained 11.20%, whereas shares owned by institutional owners are 56.60%.

Meanwhile, BB traded under umbrella of Technology sector, the stock was traded 26.26% ahead of its 52-week high and 567.78% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.

Peter Mayer

About Peter Mayer

I am Peter Mayer and I have over 7 years experience in the Technology services industry giving me a huge understanding of how news affects the Tech markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Ryerson University with previous roles counting Investment Banking.

View all posts by Peter Mayer →

Leave a Reply

Your email address will not be published. Required fields are marked *