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BlackBerry Is Trading at 48% Discount to Average Price Target

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Stock returns

BlackBerry (BB) stock fell 28% in 2016 and rose 52% in 2017. Since the start of 2018, it’s declined ~29%, indicating absolute losses of 1.3% in the last three years.

In comparison, the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ Trust, Series 1 ETF (QQQ) have returned 0.3% and 5.3%, respectively, in 2018. SPY has risen 1.3% in the last year and 37% in the last three years. QQQ has risen 6.2% in the last year and 49% in the last three years.

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Analysts’ recommendations

Of the 16 analysts tracking BlackBerry, 14 have recommended “buys,” two have recommended “holds,” and none have recommended “sells” on its stock. Analysts’ 12-month average price target for BlackBerry is $11.69. BlackBerry is trading at a discount of 48% to analysts’ average estimate.

Moving averages

On December 10, BlackBerry closed the trading day at $7.90. Based on that price, the stock was trading as follows:

  • 19% below its 100-day moving average of $9.76
  • 15% below its 50-day moving average of $9.27
  • 9.4% below its 20-day moving average of $8.72

MACD and RSI

BlackBerry’s 14-day MACD (moving average convergence divergence) is -0.55. A stock’s MACD is the difference between its short-term and long-term moving averages. BlackBerry’s negative MACD score indicates a downward trading trend.

BlackBerry has a 14-day RSI (relative strength index) score of 28, which shows that the stock is trading well into oversold territory. An RSI score of above 70 indicates that a stock has been overbought, while an RSI score of below 30 indicates that a stock has been oversold.

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