BlackBerry stock: buy or sell
Updated on:
Jan 16th, 2021
1
BlackBerry stock brief
- BlackBerry stock skyrocketed 8.01% to close at $9.84 on the stock market on Friday.
- The stock is configuring an uptrend pattern since last October, when it bottomed at $4.37. Up to date, shares marked a 125.17% gain since the beginning of this rally. BlackBerry gained a 1.55% since Friday after breaking out over its last top at $9.69
- The price is currently above the upper Bollinger band, which is usually an indicator of a near-term correction
- On Friday broke out above its latest top at $9.69
- BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide.
Should I buy BlackBerry stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $BB stock a buy?
Currently, BlackBerry stock matches one trading strategy:
Uptrend buy setup
BlackBerry stock is in an uptrend since last October that so far marked an amazing 125.00% gain. Price marked a pull back in this uptrend at $6.52 on January 4, and since then it bounced up a 50.92%. Price just broke out above the buy point at $9.69, but it's still eligible. If price goes beyond $10.17, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $8.72
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $9.69 | $8.72 | 10.00% |
Should I sell BlackBerry stock?
When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your benefits. Similarly to when we have to buy shares, choosing when is appropiate time to sell is not a fickle decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only valid for selling shares you already own, not for shorting BlackBerry stock
A guiding principle is that you must never mantain a trade that leads to higher than expected losses by the time of purchase. The timing to sell shares must always be ruled by the stop-loss (automatic or manual)
Is it time to sell BlackBerry stock?
In the current situation of BlackBerry there is not any eligible sell setup, so BlackBerry stock holders with operations in green can keep their positions
BlackBerry ratings
In the last month, 2 analyst ratings were published for BlackBerry
| Brokerage firm | Rating |
|---|---|
| Dec 18th, 2020 | |
| TD Securities | Neutral |
| Dec 20th, 2020 | |
| Raymond James | |
BlackBerry stock analysis
BlackBerry stock started an uptrend last October, and gained an amazing 125.17%. During this uptrend, the price provided some buy points on the breakouts. Latest low was on January 4, when price bounced at $6.52. On Friday, BlackBerry broke out above its last top ($9.69) giving a good entry point
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
When the price moves out of the band (above the upper line or below the lower line) it tells that the stock is currently having a very strong momentum and therefore can correct the trend to the average. At this point, the price is beyond the upper band, meaning a possible near-term correction (at least) until it is under the band
Relative strength index
Climbed over the overbought line Friday, marking a value of 78.32. Climbing above the level of 70 is not a bearish signal, as stocks can be in the overvalued zone for many, many weeks and may continue to gain
BlackBerry stock price history
BlackBerry started trading priced at an adjusted price1 of $2.15 on Feb 1999. Since then, BB stock has risen by 357.67%, with an average of 17.03% per year. If you had invested thousand dollars in BlackBerry stock on Feb 1999, it would be valued $4,576.74 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for BlackBerry stock
Nobody knows how much a stock will be priced in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
The following table shows the price target posted by financial institutions in the last 30 days. If you are a small trader you must not buy or sell based on these predictions.
There are 2 price predictions posted for BlackBerry that average $8.25. BlackBerry closed at $9.84 on Friday, so the target price is predicting a decrease by 16.16%.
| Brokerage firm | Price target |
|---|---|
| Dec 18th, 2020 | |
| TD Securities | $5.50 → $8.50 |
| Dec 20th, 2020 | |
| Raymond James | $7.50 → $8.00 |
Earnings and financials
In mid-December, BlackBerry ($BB) had the quarterly investors call and presented the report. BlackBerry beat market estimates and presented of $0.02, that is a 300.00% better than expected versus the estimates of $-0.01. On the opposite side, reported revenues were $224.0 million compared to estimates of $242.5 million.
By comparison, the EPS for the same quarter last year was $0.03, so current EPS means a decrease of -33.33%. Turnover tanked a -18.35% on an annualized basis in the , from $2.7B to $2.2B last quarter.BlackBerry ($BB) is hosting the Q4 earnings call next March.
BlackBerry performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| BlackBerry ($BB) | 17.80% | 89.20% | 104.10% |
Disclaimer:
The opinions written in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not know the particular situations of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for learning purposes onlyBlackBerry summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $10.68 |
| Close | $9.84 |
| Day range | $9.4 - $11.56 |
| Previous close | $9.11 |
| Session gain | 8.01% |
| Average true range | $0.49 |
| 50d mov avg | $6.73 |
| 100d mov avg | $5.79 |
| 200d mov avg | $5.21 |
| Earnings date | March 30th, 2021 |