C3.ai (NYSE:AI) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded C3.ai from “Sell” to “Hold,” but overall analyst sentiment remains cautious, with an average “Reduce” rating and a $8.70 price target.
• C3.ai’s latest quarter beat EPS and revenue estimates, yet the company remained deeply unprofitable and revenue fell 25.4% year over year; analysts expect a full-year loss.
• Insiders sold 1.24 million shares worth approximately $13.0 million in the last quarter, while institutional investors own about 39% of the stock.

C3.ai (NYSE:AI - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

A number of other research analysts have also recently issued reports on the company. Citizens Jmp reiterated a "market perform" rating on shares of C3.ai in a research report on Thursday, September 3rd. Citigroup reissued a "market perform" rating on shares of C3.ai in a report on Thursday, September 3rd. Canaccord Genuity Group reaffirmed a "hold" rating and set a $10.00 price target on shares of C3.ai in a report on Thursday, September 3rd. Wedbush reiterated an "outperform" rating and set a $15.00 price objective on shares of C3.ai in a research report on Thursday, June 4th. Finally, DA Davidson reiterated an "underperform" rating and set a $7.00 price objective on shares of C3.ai in a research report on Tuesday, September 1st. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $8.70.

C3.ai Price Performance

Shares of NYSE:AI opened at $10.53 on Friday. C3.ai has a fifty-two week low of $7.68 and a fifty-two week high of $20.22. The company has a market capitalization of $1.64 billion, a price-to-earnings ratio of -3.42 and a beta of 2.10. The firm's 50 day simple moving average is $9.68 and its 200 day simple moving average is $9.43.

C3.ai (NYSE:AI - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.20) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.06. C3.ai had a negative net margin of 192.10% and a negative return on equity of 61.25%. The company had revenue of $52.38 million during the quarter, compared to the consensus estimate of $52.06 million. During the same quarter in the prior year, the firm earned ($0.37) earnings per share. The firm's revenue was down 25.4% compared to the same quarter last year. Equities research analysts expect that C3.ai will post -2.22 earnings per share for the current year.

Insider Activity at C3.ai

In other C3.ai news, CEO Thomas Siebel sold 472,005 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $11.11, for a total value of $5,243,975.55. Following the completion of the sale, the chief executive officer directly owned 722,362 shares of the company's stock, valued at approximately $8,025,441.82. This represents a 39.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Stephen Ehikian sold 50,542 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $9.45, for a total value of $477,621.90. Following the completion of the transaction, the chief executive officer owned 651,130 shares in the company, valued at $6,153,178.50. The trade was a 7.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 1,235,080 shares of company stock valued at $13,001,478. 19.80% of the stock is owned by corporate insiders.

Institutional Trading of C3.ai

A number of institutional investors have recently modified their holdings of the business. NewEdge Advisors LLC lifted its holdings in shares of C3.ai by 48.7% in the 1st quarter. NewEdge Advisors LLC now owns 2,442 shares of the company's stock valued at $51,000 after purchasing an additional 800 shares during the last quarter. Parallel Advisors LLC increased its position in C3.ai by 76.4% during the third quarter. Parallel Advisors LLC now owns 1,849 shares of the company's stock worth $32,000 after buying an additional 801 shares during the period. BOKF NA lifted its stake in C3.ai by 20.7% in the third quarter. BOKF NA now owns 4,709 shares of the company's stock valued at $82,000 after buying an additional 809 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in C3.ai by 8.8% in the third quarter. Envestnet Asset Management Inc. now owns 12,560 shares of the company's stock valued at $218,000 after buying an additional 1,018 shares during the last quarter. Finally, Larson Financial Group LLC boosted its holdings in shares of C3.ai by 683.6% in the third quarter. Larson Financial Group LLC now owns 1,481 shares of the company's stock valued at $26,000 after acquiring an additional 1,292 shares during the period. 38.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting C3.ai

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: Federal bookings surged 138% in the fiscal first quarter, while restructuring efforts are improving margins. The combination suggests potential progress in C3.ai’s government business and cost structure. C3.ai Q1 2027 Earnings Call Transcript
• Positive Sentiment: Northland Securities raised its projected EPS for C3.ai’s second, third, and fourth quarters of fiscal 2027, as well as its full-year forecast. Although the company is still expected to report losses, the revised estimates indicate expectations for narrower losses than previously forecast. C3.ai Analyst Estimate Updates
• Neutral Sentiment: Recent coverage compares C3.ai’s fiscal first-quarter revenue, EPS, and operating metrics with Wall Street estimates and year-ago results. The reports provide additional context on execution but do not identify a new company-specific catalyst in the available details. Compared to Estimates, C3.ai Q1 Earnings
• Neutral Sentiment: Broader debate over whether artificial-intelligence risks are exaggerated could influence sentiment toward AI-related stocks, but the discussion is not specific to C3.ai’s fundamentals. AI Doomer Narrative Explodes as Tech Leaders Fire Back
• Negative Sentiment: Analysts give C3.ai an average “Reduce” recommendation, signaling continued caution about the company’s valuation, growth outlook, or path to profitability. C3.ai Given Average Recommendation of Reduce
• Negative Sentiment: Despite beating the latest quarterly EPS and revenue estimates, C3.ai remains deeply unprofitable, and revenue declined 25.4% year over year. Continued losses and weak top-line growth may limit the stock’s upside.

About C3.ai

C3.ai, Inc develops enterprise artificial intelligence software and applications for organizations in a range of industries. Its technology is designed to help businesses use data, machine learning and predictive analytics to address operational, financial and strategic challenges.

The company's offerings include the C3 AI Platform, which provides tools for developing, deploying and operating AI applications, as well as prebuilt applications for use cases such as predictive maintenance, fraud detection, supply-chain optimization, customer engagement, energy management and regulatory compliance.

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