BlackBerry Trading at a Discount after Stock Fell

Stock returns

BlackBerry (BB) stock has returned -3.4% in the last 12 months, -4.7% in the last month, and -12.5% in the last five days. It fell 28% in 2016 and then rose 52% in 2017. Since the start of 2018, the stock has fallen 4.4%. By comparison, the S&P 500 ETF (SPY) and the Invesco QQQ Trust ETF (QQQ) have generated returns of 2% and 9.4%, respectively, in 2018.

Analysts’ recommendations and price targets

Of the five analysts tracking BlackBerry stock, two have recommended a “buy,” and two have recommended a “hold.” There was one “sell” recommendation. Analysts’ 12-month average price target for BlackBerry is $12.53, and the median estimate is $12. BlackBerry is trading at a discount of 12.5% to its median estimate, driven by its recent price decline.

BlackBerry Trading at a Discount after Stock Fell

Moving averages

On June 22, BlackBerry stock closed at $10.67. Based on that price, the stock is trading as follows:

  • 5.9% below its 100-day moving average of $11.34
  • 3.9% below its 50-day moving average of $11.11
  • 9.4% below its 20-day moving average of $11.78

Technical indicators

BlackBerry’s 14-day MACD (moving average convergence divergence) is 0.31. MACD marks the difference between a stock’s short-term and long-term moving averages. Its positive MACD indicates an upward trading trend.

BlackBerry has a 14-day RSI (relative strength index) score of 35, which shows that the stock is trading close to overbought territory. An RSI score above 70 indicates that a stock has been overbought, while an RSI score below 30 suggests that it has been oversold.