BlackBerry Ltd (NYSE:BB) shares are trading higher on Thursday as investors lean into the company's renewed share buyback program.
- BlackBerry shares are advancing steadily. Why is BB stock trading higher?
BlackBerry Launches 2026 Share Repurchase Program
BlackBerry last week launched a new share repurchase program which began on May 12. The program scheduled to run for one year or until the authorized number of shares is reached. The company plans to buy back stock across several major platforms, including the Toronto Stock Exchange and the New York Stock Exchange.
BlackBerry said the company will repurchase up to 26.8 million common shares over the next year. The renewed buyback program represents about 4.58% of BlackBerry's public float as of April 30. The company said repurchased shares will be canceled.
This new initiative follows a prior buyback program that saw the company repurchase over 18 million shares at an average price of $3.85 per share. Management believes the current stock price still does not fully reflect the company's underlying business value or its future growth potential. By repurchasing these shares, BlackBerry intends to return capital to its investors while also offsetting the dilution that occurs when new shares are issued for employee incentive plans.
The company's ability to fund this program is supported by an improving financial outlook. After strengthening its balance sheet over the past fiscal year, BlackBerry expects to generate meaningful positive operating cash flow starting in 2027.
BB Stock: Key Technical Levels To Watch
BB is stretched to the upside after a strong 12-month run (up 60.95%), and it's now trading well above its major trend gauges—about 12.1% above the 20-day SMA ($5.56) and more than 50% above the 200-day SMA ($4.11). That separation supports the uptrend, but it also raises the odds of a pullback if momentum cools.
Momentum is the main tension: RSI is 72.43, which signals the move is getting "stretched" and can be prone to sharper dips even if the trend stays bullish. For non-technicians, RSI is a speedometer for price moves—readings above 70 often mean buyers have pushed the stock hard enough that near-term upside can get choppy.
The trend structure still looks constructive after the golden cross in May (50-day SMA above the 200-day SMA), following the death cross back in January. With the 52-week high at $6.61 and the stock at $6.25, traders are watching whether price can keep accepting near the top of the yearly range or slips back toward faster moving-average support.
- Key Resistance: $6.61 — the 52-week high zone that can act as the next breakout test
- Key Support: $5.56 — aligns with the 20-day SMA, a first "trend support" area if momentum fades
What Is BlackBerry’s Business Model Today?
BlackBerry, once known for being the world’s largest smartphone manufacturer, is now exclusively a software provider with a stated goal of end-to-end secure communications for enterprises. The firm provides endpoint management and other secure communications software to enterprises, specializing in regulated industries like government and financial institutions.
BlackBerry also has a sizable embedded software business primarily serving the automotive market, with some exposure to the industrial market. That mix makes capital-return decisions like a buyback especially relevant, since management is effectively signaling confidence that the current share price doesn't reflect longer-term business value.
BlackBerry Benzinga Edge Rankings Explained
Below is the Benzinga Edge scorecard for BlackBerry, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 91.02) — The stock is acting like a leader, with price strength that's outpacing the broader market.
- Value: Weak (Score: 13.19) — The setup screens as expensive on traditional value metrics, so execution needs to stay strong to justify the multiple.
- Growth: Bullish (Score: 97.5) — The profile is tilted toward growth expectations, which can support the trend when the sector is in favor.
The Verdict: BlackBerry’s Benzinga Edge signal reveals a momentum-and-growth-driven profile with weak value support. That combination can work well in a strong Technology tape, but it also means pullbacks can be sharper if sentiment shifts or the stock fails to hold near its highs.
BB Shares Edge Higher Thursday Morning
BB Stock Price Activity: BlackBerry shares were up 2.79% at $6.27 at the time of publication on Thursday, according to Benzinga Pro data.
Image: Shutterstock
Login to comment