In recent trading, shares of Blackbaud, Inc. (Symbol: BLKB) have crossed above the average analyst 12-month target price of $81.00, changing hands for $81.15/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or adjust their target price to a higher level. Analyst reactions may also depend on fundamental business developments that could be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
Diverse Perspectives on Analyst Price Targets
There are five different analyst targets within the Zacks coverage universe contributing to that average for Blackbaud, Inc. However, the average represents just a mathematical mean. Some analysts maintain lower targets, with one predicting a price of $70.00, while another analyst has set a much more optimistic target of $95.00. The standard deviation of these targets is $8.944, indicating varied expectations among analysts.
Evaluating the Market Response
The reason to look at the average BLKB price target is to tap into a “wisdom of crowds” approach. This method aggregates the insights from multiple analysts rather than relying on a single expert’s opinion. With BLKB currently trading above the average target price of $81.00/share, investors have a pivotal opportunity to reassess the company’s performance and consider whether $81.00 is just a milestone on the path to an even higher target, or if it’s time to think about taking some profits. Below is a summary of current analyst ratings for Blackbaud, Inc.:
| Recent BLKB Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 0 | 0 | 1 | 1 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 3 | 3 | 3 | 3 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.75 | 2.75 | 2.4 | 2.4 |
The average rating presented in the last row of the table ranges from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
