BlackBerry Stock Is Tumbling Tuesday: What's Going On?

BlackBerry Ltd BB shares are falling in Tuesday’s after-hours session after the company announced a proposed private offering.

What Happened: After the market close on Tuesday, BlackBerry said it intends to offer $160 million worth of Convertible Senior Notes due 2029 in a private offering. 

The notes will be offered only to qualified institutional investors.

BlackBerry expects to grant the initial purchases the option to purchase up to an additional $25 million of the notes over a 13-day period.

BlackBerry said it expects to use the proceeds to fund the repayment or repurchase of its outstanding $150 million worth of 1.75% extendible convertible unsecured debentures due next month.

Is BB A Buy? Wall Street analysts view BlackBerry on the whole as a Neutral, given the history of coverage over the past three months. RBC Capital’s Paul Treiber is the most bearish, expecting an 11.11% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. 

In the past three months, BlackBerry climbed 2.6% higher, indicating that opinion improved on the business and how attractive it is to own based on its stock price or underlying fundamentals, like revenue, which rose 3.55% over the past year.

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See Also: Let Bears Fret About Tech Valuations, Analyst Says: How AI Leaders Microsoft, Nvidia And Google Can Push Higher

BB Price Action: BlackBerry shares are down approximately 17% over a one-year period. The stock was down 13.80% after hours at $3.06 at the time of publication, according to Benzinga Pro.

Photo: courtesy of BlackBerry.