BlackSky Technology Inc. (NYSE:BKSY) shares are declining on Friday, caught in a broader market downturn. The Nasdaq is down 55 cents while the S&P 500 has shed 79 cents.
• BlackSky Technology stock is feeling bearish pressure. What’s behind BKSY decline?
Deal With Rocket Lab
On Thursday, BlackSky inked into a new agreement with Rocket Lab USA, Inc. (NASDAQ:RKLB) to secure four additional dedicated Electron launches. This partnership aims to expand BlackSky’s AI-powered Gen-3 Earth observation satellite constellation, marking a significant milestone in their collaboration.
Recent Earnings Release
BlackSky reported on Thursday quarterly losses of two cents per share, which beat the analyst consensus estimate loss of 21 cents, while sales of $35.214 million missed the analyst consensus estimate of $37.056 million.
The company sees FY26 sales of $120 million-$145 million versus $141.759 million analyst estimate.
BKSY Falls Below Key Moving Averages
BlackSky is currently trading at $17.79, significantly below its key moving averages, which signals bearish momentum. The stock is 17.8% below its 20-day SMA of $21.57 and 21.2% below its 50-day SMA of $22.51.
Over the past 12 months, the stock has gained 22.56%, but it remains near the lower end of its 52-week range, which saw a high of $33.20 and a low of $6.15.
The technical indicators reflect the stock’s struggles. The RSI is at 43.02, indicating a lack of strong momentum either way, while the MACD stands at -0.9485, below its signal line at -0.6852, suggesting bearish pressure. These indicators, combined with the stock’s performance relative to its moving averages, paint a picture of current bearish trends.
Communication Services Sector Outperforms BKSY
BlackSky is notably underperforming in its sector today, with the Communication Services sector itself seeing a modest gain of 46 cents.
Historically, over the past 30 and 90 days, the sector has shown slight increases of 44 cents and $2.10, respectively, indicating a generally stable environment. However, BlackSky’s significant drop today, in contrast to the sector’s gain, could point to investor concerns specific to the company or its immediate business environment.
Analysts Maintain Buy Rating on BKSY
- EPS Estimate: 31 cents (Up from 42 cents)
- Revenue Estimate: $31.59 Million (Up from $29.54 Million)
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $24.80. Recent analyst moves include:
- HC Wainwright & Co.: Buy (Maintains target to $42 on Feb. 27)
- Jefferies: Initiated with Buy (Target $23 on Dec. 22, 2025)
- HC Wainwright & Co.: Buy (Raises target to $42 on Oct. 10, 2025)
BKSY Lags Behind Sector Peers
BlackSky has seen a significant uptick in its performance over the past year, registering a +22.80% increase. Despite this growth, it lags behind the average performance of its peers in the Communications sector.
Performance vs Peer Group: BlackSky’s year-over-year growth stands at +22.80%, which is below the peer group average of +32.46%. This underperformance by 9.66 percentage points highlights the challenges BlackSky faces in keeping pace with its sector peers. The company’s growth trajectory, while positive, indicates a need for strategic adjustments to close the gap with the broader industry performance.
BKSY Scores High on Benzinga Edge Momentum
The Benzinga Edge scorecard for BlackSky highlights its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 74.66) — The company shows strong performance momentum relative to the market.
BKSY Price Action: BlackSky is currently trading at $17.79, down 11.01% at publication on Friday.
Photo: Canities via Shutterstock
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