Stocks of BlackSky Technology Plunging Today: Reasons Explored
BlackSky Technology, a leading satellite technology company specializing in defense tech, experienced a 12% decline in its stock price by noon ET on Tuesday. This decline, however, is not directly related to the preliminary second-quarter numbers disclosed by the company.
The preliminary second-quarter revenue for BlackSky is reported to be $22.2 million, a decrease of approximately 11% year over year. The decline in professional-and-engineering services revenue is partially attributed to the timing of completing longer-term contracts.
Clear Street, a financial services firm, published new coverage on BlackSky and lowered its rating on the stock from buy to hold. Clear Street's analysts expressed concerns about BlackSky's valuation and suggested that the company's shares offer limited upside. The firm's one-year price target for BlackSky is $24 per share.
In a similar move, Canaccord lowered its price target on BlackSky's stock from $28 per share to $27 per share due to the unexpected sales decline. The analysts' notes on BlackSky from both Clear Street and Canaccord may have contributed to the stock price decline.
Despite the pullback, BlackSky's share price is still up roughly 80% across 2021's trading. Analysts from Wedbush and Raymond James have issued new ratings for BlackSky Technology, setting price targets of $9.00 and $9.50 respectively.
BlackSky submitted a filing to the Securities and Exchange Commission (SEC) on July 17, including preliminary results for the second quarter. The upcoming conference call, scheduled before the market opens on Aug. 7, should provide investors with a clearer picture of BlackSky's financial performance in the second quarter. The call is expected to update investors on BlackSky's Gen-3 satellites and recent contract wins.
In the broader market context, as of the same time, the S&P 500 was down 0.2% and the Nasdaq Composite was down 0.5%. The conference call and the official release of Q2 results are anticipated to provide more insight into BlackSky's current financial standing and future prospects.
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