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WATERLOO, ON - BlackBerry Limited (NYSE:BB)(TSX:BB), currently valued at $2.19 billion, announced the initiation of a share repurchase program, approved by the Toronto Stock Exchange, to buy back up to 27.8 million of its common shares. This figure represents about 4.7% of its public float as of May 5, 2025. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 1.72. The repurchase initiative, known as a normal course issuer bid (NCIB), will allow BlackBerry to acquire shares through various Canadian and U.S. exchanges and alternative trading systems, with the possibility of private agreements under certain conditions.
The NCIB is set to commence on May 12, 2025, and will end on the earliest of May 11, 2026, a date chosen by BlackBerry, or when the buyback cap is reached. The company has not repurchased any securities in the past 12 months. Daily repurchases on the Toronto Stock Exchange are capped at 721,194 shares, barring block purchases. The announcement comes as BlackBerry’s stock has shown significant momentum, with a 58.6% price return over the past six months.
BlackBerry, a company specializing in intelligent software and services for enterprises and governments, believes the market price of its shares at times does not reflect the company’s value and future prospects. While the company generated $534.9 million in revenue over the last twelve months, InvestingPro analysis reveals 12 additional key insights about BlackBerry’s financial health and growth prospects. The NCIB is viewed as an opportunity to achieve a favorable return on capital and mitigate dilution from equity incentive plans. BlackBerry asserts that this buyback will not impact its long-term strategy and expects to continue generating positive operating cash flow in fiscal 2026.
The exact number of shares to be repurchased and the timing will depend on market conditions and regulatory constraints. The purchased shares will be canceled, contributing to a reduction in the overall share count. For a comprehensive analysis of BlackBerry’s valuation and future prospects, investors can access the detailed Pro Research Report available on InvestingPro, which provides expert insights and actionable intelligence for smarter investment decisions.
This share repurchase program is based on a press release statement from BlackBerry Limited. The company’s decision to buy back shares is part of its investment and capital allocation strategy, providing flexibility in managing its capital structure.
In other recent news, BlackBerry Limited reported fourth-quarter earnings that exceeded expectations, with adjusted earnings per share of $0.03, surpassing the analyst estimate of $0.02. The company’s revenue reached $141.7 million, beating the consensus forecast of $132.2 million. Despite these positive results, BlackBerry’s guidance for the upcoming fiscal year fell short, with projected first-quarter revenue between $107 million and $115 million, below the analyst consensus of $128.4 million. For fiscal year 2026, the company expects revenue to range from $504 million to $534 million, also below the Street’s estimate of $550.6 million.
Additionally, BlackBerry’s crisis communication system, BlackBerry AtHoc, achieved FedRAMP High Authorization, enhancing its security credentials for federal agencies. On the analyst front, RBC Capital Markets reduced its price target for BlackBerry to $3.75, maintaining a Sector Perform rating, while Canaccord Genuity adjusted its price target to $4.25, keeping a Hold rating. Both firms cited concerns about the company’s financial guidance and market conditions. BlackBerry’s QNX backlog, valued at approximately $865 million, is noted as a potential revenue source, though uncertainties remain about its impact on growth.
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