BlackBerry Ltd (NASDAQ:BBRY) & Twitter Inc. (NYSE:TWTR) Trading In Opposite Direction
BlackBerry Ltd (NASDAQ:BBRY)’s stock is trading some wild swings and was down 8.67% on Thursday. Despite the fall, the stock has gained 16% during past 5 trading sessions, following its 3Q14 earnings release and announcement of the turnaround plan where it partnered with Taiwan based Foxconn Technology Co Ltd for manufacture of its low-end devices especially for the emerging markets.
More than 23% gains during Friday through Tuesday inspired the Company insider, former CEO and BlackBerry’s cofounder Michael Lazaridis to cut his stake below 5% level. Over the past two trading sessions, Lazaridis sold 3.5 million shares. In addition, Lazaridis also made it official that he has ended the bid to buy the struggling telecom company.
Signals from Insider Selling
As insider activities are closely monitored by most of the analysts as well as investors, the selling by BlackBerry Ltd (NASDAQ:BBRY) insider and one of the prominent executives, waves the warning signal to most of the investors. As the founder, Lazaridis is expected to know what is exactly happening at the company and where the stock could head from here, investors are advised to take signal and cut their positions to significant level.
Analysts also welcomed this move of Lazaridis and considered it a smart one as shares were fairly priced at the moment. Moreover analysts do not expect the stock to head much higher from its current level. The anticipation seems rationale, as the turnaround efforts would take more than couple of quarters to write down the losses and post healthy quarterly results.
The Bullish Sentiment
While BlackBerry Ltd (NASDAQ:BBRY) has shed more than 61% year to date, the micro-blogging site Twitter Inc. (NYSE:TWTR) has reported more than 61% gains since its listing in early November. The stock gained 4.8% on Thursday and marked a fresh high of $74.73 before closing at $73.31. The stock also traded with staggering volume of 82.71 million shares, against its 30 day average volume of 15.25 million shares.