The security suffered a price cut by Canaccord to $ 9 from $ 10
The shares of BlackBerry Ltd. (NYSE: BB) fell 9.6% to $ 8.45 this afternoon after the tech company reported fourth-quarter earnings that were in line with Wall Street estimates but fell short of revenue expectations. The disappointing results came even though sales of its QNX car software improved. In return, Canaccord Genuity upgraded the security from “Sell” to “Hold”, but lowered its price target from $ 10 to $ 9. Scotiabank also jumped on the bearish train and distributed a price cut from $ 8.50 to $ 7.50.
Share capital, which digs deeper, has had issues since a Reddit fuel Commercial frenzy helped it hit a nine-year high of $ 27.77 on Jan. 27. However, stocks fell shortly thereafter, now accounting for about a third of what they were at their peak. Additionally, security has fallen below its once-supportive 20-day moving average, although it is still 106.2% ahead of the year.
The analysts were pessimistic about today’s BlackBerry stock. Three of the six companies featured in the coverage called this “hold” while the remaining three said “sell strong”. Additionally, the 12 month consensus target of $ 7.63 is a 10.4% discount off the current level of BB.
In the meantime, shorts have accumulated on BB. Short rates are up 16.4% over the last two reporting periods, and the 37.66 million short stocks sold represent 6.8% of the stock’s available free float.
That pessimism is reflected in the option pits where puts are all the rage. This corresponds to the 10-day put / call volume ratio of Blackberry shares on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which is in the 80th percentile of their annual range . In simpler terms, puts were recorded with a faster clip than usual.
After all, now seems like a good time to weigh BB’s next move with options. The security’s 119% Schaeffer’s Volatility Index (SVI) is in the 17th percentile for the past 12 months, indicating that the stock sports are currently offered at affordable prices.