NEW YORK (TheStreet) -- BlackBerry (BBRY) shares are up 0.34% to $8.86 in early market trading on Thursday after the mobile phone and software company announced a new 12 million share buy back plan.
The reason for the buy back is to offset dilution from employee stock plans, according to the company.
Blackberry has approximately 529.5 million outstanding shares with about 464.7 million shares owned by public investors.
The buyback, which will conclude June 28, 2016, represents about 2.5% of the company's publicly held shares.
Insight from TheStreet Research Team
Jim Cramer, co-portfolio manager of the Action Alerts PLUS charitable trust, is not sold on BlackBerry's turnaround and cautioned investors to stay away from the stock in a Real Money Pro blog post yesterday titled "BlackBerry and Darden Are on the Wrong Path".
Here is what Cramer had to say:
First, let's tackle BlackBerry. Ever since John Chen came in almost two years ago, there have been three narratives at work:
- Don't worry about declining hardware sales, we will either fix that or sell it.
- We will boost software and licensing sales so you realize we are an asset-lite company a la market fave QUALCOMM (QCOM).
- We will sell ourselves if we want to.
All three narratives were trashed yesterday. First, the hardware sales were horrendous: 1.1 million smart phones vs. 2.6 million last year. Awful. Chen's plan? "I don' t want to give up the hardware business. I think there's a shot at sill making money in it." So much for fix or sell it.