Please ensure Javascript is enabled for purposes of website accessibility

Why BlackBerry Stock Is Popping Again

By Rich Smith - Jan 29, 2021 at 11:32AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As BlackBerry stock soared, three executives dumped their shares.

What happened

Popularized by Reddit traders on WallStreetBets early in the week then crushed by brokers' reaction to the WSB phenomenon on Thursday, shares of BlackBerry Limited (BB 0.87%) are taking off again in Friday trading now that some brokers who had limited or banned purchases of heavily shorted stocks yesterday are lifting their bans.

In 11 a.m. trading, BlackBerry stock is up 9.5%.

Fiery flaming stock arrow going up

Image source: Getty Images.

So what

With WSB unshackled, it's no great mystery why BlackBerry stock is hot again -- but here's the really curious thing: Some of the folks you'd expect to be pleased by this development are actually missing out on the rally instead. As Reuters reports this morning, three of the software company's top executives, including the chief financial officer and chief marketing officer of the company, sold a combined $1.7 million worth of BlackBerry stock "in the early days of this month's meteoric share price rise."

Whereas BlackBerry stock hit an intraday five-year high of $28.77 per share on Wednesday (and still trades north of $16 right now), some of the people who know BlackBerry's business best headed for the exits and sold their shares for a paltry $12.63 to $13.01 apiece.

Now what

What should investors take away from this news, aside from perhaps a feeling of schadenfreude at the corner-office execs missing out on the rally? Although it is true that investors sell stock for many reasons and that it can be dangerous to make assumptions about why they sell, the fact remains:

On Wednesday, with BlackBerry stock having roughly doubled since the start of the month, the company's top number cruncher and the guy most responsible for knowing how well BlackBerry's products are selling both decided to cut their exposure to their own company's stock. (Indeed, the CFO sold "his entire position in the company," reports Reuters.)

That doesn't speak highly of their confidence in the company or their belief that today's high share prices are sustainable. Caveat investor.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BlackBerry Stock Quote
BlackBerry
BB
$5.80 (0.87%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.