BlackBerry (TSE:BB) Shareholders Have Enjoyed An Impressive 146% Share Price Gain

BlackBerry Limited (TSE:BB) shareholders have seen the share price descend 10% over the month. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 146%. So some might not be surprised to see the price retrace some. The real question is whether the business is trending in the right direction.

View our latest analysis for BlackBerry

BlackBerry wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

BlackBerry actually shrunk its revenue over the last year, with a reduction of 4.8%. We're a little surprised to see the share price pop 146% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for BlackBerry in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that BlackBerry shareholders have received a total shareholder return of 146% over the last year. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand BlackBerry better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for BlackBerry you should be aware of.

BlackBerry is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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