5 Investors Betting Big on BlackBerry (BB) Stock


  • BlackBerry (BB) reported its Q4 earnings with revenue coming in at $151 million.
  • FIFTHDELTA is the largest shareholder of the company with a 57.92 million share stake.
  • BB stock is up by over 35% year-to-date.
BB stock - 5 Investors Betting Big on BlackBerry (BB) Stock

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Shares of BlackBerry (NYSE:BB) stock are up by about 15% after the company released its earnings results for the fourth quarter and full 2023 fiscal year. Revenue tallied in at $151 million, which came in below the analyst estimate of $155.3 million. Of the revenue, $53 million was attributed to the company’s Internet of Things (IoT) division, $88 million to cybersecurity, and $10 million to licensing and other revenue. Furthermore, the company reported a net loss of $495 million. That’s equivalent to a non-GAAP EPS loss of 2 cents or a GAAP EPS loss of 85 cents. BlackBerry noted that much of the EPS loss was due to an “$0.82 non-cash goodwill and long-lived asset impairment charge.”

“This fiscal year, BlackBerry’s IoT business unit set a new record for QNX design wins, with royalty backlog reaching $640 million,” said BlackBerry. “Further, despite near-term macro and supply chain challenges for vehicle production, revenue increased by 16% year over year.”

So, why exactly are shares of BB stock up so much if the company missed on revenue? Positive guidance is the culprit here. For the fiscal year 2024, IoT is expected to come in between $240 and $250 million. Furthermore, cybersecurity revenue is estimated to be between $425 and $450 million. Royal Bank of Canada analyst Paul Treiber believes this guidance will imply full-year revenue of between $685 and $720 million.

With that in mind, let’s take a look at the investors betting big on BlackBerry.

5 Investors Betting Big on BB Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 216 13F filers disclosed ownership of BB, a decline of 10 filers from the prior period. These filers own a total of 271.26 million shares, up from 248.50 million shares quarter-over-quarter. Meanwhile, the institutional put/call ratio sits at 0.4, down from 0.63. That’s equivalent to 5.13 million puts and 12.74 million calls, implying a bullish options stance.

Here are the five largest shareholders of the company:

  1. FIFTHDELTA: 57.92 million shares. FIFTHDELTA purchased 26.20 million shares during Q4.
  2. Fairfax Financial Holdings (OTCMKTS:FRFHF): 46.72 million shares. Fairfax’s position remained unchanged during Q4.
  3. PRIMECAP Management Company: 35.97 million shares. PRIMECAP sold 1.88 million shares during Q4.
  4. Legal & General Group (OTCMKTS:LGGNY): 21.10 million shares. Legal & General purchased 1.85 million shares during Q4.
  5. Vanguard Group: 18.48 million shares. Vanguard purchased 356,639 shares during Q4.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/5-investors-betting-big-on-blackberry-bb-stock/.

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