BlackBerry Stock Is Moving Higher Thursday: Here's Why

BlackBerry Ltd BB shares are trading higher Thursday after the company announced intentions to separate its IoT and Cybersecurity businesses. 

What Happened: BlackBerry's board has determined that separating its IoT and Cybersecurity business units is the best strategy for the company as a result of its previously announced strategic review to drive shareholder value.

BlackBerry said it plans to pursue an IPO for its IoT business sometime in the first half of the company's next fiscal year. The separation aims to allow each business unit to pursue its own strategy and capital allocation policy.

"The Board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders," said John Chen, executive chair and CEO of BlackBerry.

"Both the IoT and Cyber businesses have leading technology and talent and address large and growing market opportunities. This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers."

BlackBerry also noted that it will continue to pursue Project Imperium objectives as it launches activities surrounding its business unit separation.

Last week, BlackBerry reported second-quarter financial results, showing quarterly IoT revenue of $49 million and cybersecurity revenue of $79 million.

BlackBerry is currently covered by four analyst firms. One has a Buy rating on the stock and the other three have Neutral ratings. Price targets range from $4 to $7.

See Also: What's Going On With Alibaba Stock Thursday?

BB Price Action: BlackBerry has a 52-week high of $5.75 and a 52-week low of $3.17. The stock was up 1.87% at $4.35 at the time of writing, per Benzinga Pro.

Photo: courtesy of BlackBerry.