BlackBerry stock returns
BlackBerry (BB) stock has burnt significant investor wealth over the years. Its decline in the smartphone market was nothing less than horrific. BlackBerry’s stock has fallen close to 90.0% in the last ten years. However, since the start of this year, BlackBerry stock is up 11.4%.
The recent weakness in broader markets has also impacted BlackBerry stock. The stock has declined 21.5% since the start of April this year. BlackBerry stock is currently trading at $7.92 per share, which is 20.5% above its 52-week low and 36.5% below its 52-week high.
Of the 16 analysts tracking BlackBerry, four have recommended “buys,” ten have recommended “holds,” and two have recommended “sells.” Analysts have a 12-month average target price of $10.95 on the stock, which indicates a potential upside of 38.0% from its current price.
What do the technical indicators suggest?
BlackBerry stock is trading at $7.92 per share, which means that it’s trading at the following levels:
- 8.9% below its 100-day moving average of $8.69
- 10.0% below its 50-day moving average of $8.80
- 2.6% below its 20-day moving average of $8.13
RSI and MACD
BlackBerry has a MACD (moving average convergence divergence) score of -0.09. A stock’s MACD marks the difference between its short-term and long-term moving averages. BlackBerry’s negative MACD score indicates a downward trading trend.
BlackBerry stock has a 14-day RSI (relative strength index) score of 37, which shows that its stock is trading close to oversold territory. An RSI score of above 70 indicates that a stock is overbought, while an RSI score of below 30 indicates that a stock is oversold.
BlackBerry has tried to pivot and successfully achieved its financial target at least for 2019. However, short-term profitability remains a concern. BlackBerry too has shifted to a subscription-based model that generates recurring sales. BlackBerry has achieved revenue growth by expanding its customer base by almost 6x in the last three years as well as via acquisitions.
The stock is much more volatile than broader markets, and it is still difficult to tell whether BlackBerry is a solid long-term bet or not.