why BlackBerry Ltd [BB] is a Good Choice for Investors After New Price Target of $5.01

BlackBerry Ltd [NYSE: BB] slipped around -0.05 points on Monday, while shares priced at $2.66 at the close of the session, down -1.85%. The company report on January 24, 2024 at 11:45 PM that BlackBerry Announces Pricing of Upsized Private Offering of $175 Million of 3.00% Convertible Senior Notes.

BlackBerry Limited (NYSE: BB; TSX: BB) (“BlackBerry”) announced today the pricing of its private offering of $175 million aggregate principal amount of its 3.00% Convertible Senior Notes due 2029 (the “notes”) at an approximately 32.50% conversion premium to the closing share price of $2.93 on The New York Stock Exchange on January 24, 2024. The notes were offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and pursuant to prospectus exemptions in Canada and other jurisdictions. BlackBerry also granted the initial purchasers of the notes the option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $25 million aggregate principal amount of the notes. The offering was upsized from the previously announced offering of $160 million aggregate principal amount of notes. The closing of the offering is expected to occur on January 29, 2024, subject to customary closing conditions, including approval from the Toronto Stock Exchange.

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BlackBerry estimates that the net proceeds from the offering will be approximately $169.6 million (or approximately $194.0 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting fees and estimated offering expenses payable by BlackBerry. BlackBerry intends to use the net proceeds from the offering of the notes to fund the repayment or repurchase of its outstanding $150 million aggregate principal amount of 1.75% extendible convertible unsecured debentures due February 15, 2024 (the “Existing Debentures”) and the remainder for general corporate purposes.

Compared to the average trading volume of 7.02M shares, BB reached a trading volume of 6790716 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about BlackBerry Ltd [BB]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BB shares is $5.01 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BB stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

RBC Capital Mkts have made an estimate for BlackBerry Ltd shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on December 21, 2023.

The Average True Range (ATR) for BlackBerry Ltd is set at 0.16, with the Price to Sales ratio for BB stock in the period of the last 12 months amounting to 1.87. The Price to Book ratio for the last quarter was 1.89, with the Price to Cash per share for the same quarter was set at 0.36.

How has BB stock performed recently?

BlackBerry Ltd [BB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.74. With this latest performance, BB shares dropped by -18.15% in over the last four-week period, additionally sinking by -44.23% over the last 6 months – not to mention a drop of -41.92% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BB stock in for the last two-week period is set at 26.95, with the RSI for the last a single of trading hit 22.41, and the three-weeks RSI is set at 30.60 for BlackBerry Ltd [BB]. The present Moving Average for the last 50 days of trading for this stock 3.54, while it was recorded at 2.76 for the last single week of trading, and 4.34 for the last 200 days.

BlackBerry Ltd [BB]: Deeper insight into the fundamentals

BlackBerry Ltd’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.89 and a Current Ratio set at 0.89.

Earnings analysis for BlackBerry Ltd [BB]

With the latest financial reports released by the company, BlackBerry Ltd posted -0.02/share EPS, while the average EPS was predicted by analysts to be reported at -0.05/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 60.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BB.

Insider trade positions for BlackBerry Ltd [BB]

The top three institutional holders of BB stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in BB stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in BB stock with ownership which is approximately 5.8325%.