C3.ai (NYSE:AI) Stock Rating Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded C3.ai to “sell” from “hold.” The broader analyst consensus is “Reduce,” with one Buy, four Hold and seven Sell ratings and an average price target of $8.70.
• C3.ai reported a quarterly loss of $0.20 per share, beating estimates, while revenue of $52.38 million slightly exceeded forecasts but declined 25.4% year over year. Analysts expect a full-year loss of approximately $2.21 per share.
• The stock opened at $11.01 and has traded between $7.68 and $20.22 over the past year. Insiders sold 1.12 million shares worth about $11.7 million during the last 90 days.

C3.ai (NYSE:AI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Other research analysts have also issued reports about the stock. Citigroup reaffirmed a "market perform" rating on shares of C3.ai in a research note on Thursday, September 3rd. Weiss Ratings raised shares of C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, August 4th. Canaccord Genuity Group restated a "hold" rating and issued a $10.00 target price on shares of C3.ai in a report on Thursday, September 3rd. DA Davidson reaffirmed an "underperform" rating and set a $7.00 price target on shares of C3.ai in a research note on Tuesday, September 1st. Finally, Citizens Jmp reiterated a "market perform" rating on shares of C3.ai in a report on Tuesday. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $8.70.

C3.ai Trading Down 0.9%

AI opened at $11.01 on Friday. The stock has a 50-day moving average of $10.27 and a 200 day moving average of $9.60. C3.ai has a 12 month low of $7.68 and a 12 month high of $20.22. The firm has a market cap of $1.77 billion, a P/E ratio of -3.58 and a beta of 2.11.

C3.ai (NYSE:AI - Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.20) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.06. The business had revenue of $52.38 million during the quarter, compared to analyst estimates of $52.06 million. C3.ai had a negative return on equity of 61.25% and a negative net margin of 192.10%.The company's revenue for the quarter was down 25.4% on a year-over-year basis. During the same period last year, the company earned ($0.37) EPS. On average, research analysts forecast that C3.ai will post -2.21 earnings per share for the current fiscal year.

Insider Buying and Selling at C3.ai

In other C3.ai news, CFO Hitesh Lath sold 21,077 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $10.48, for a total value of $220,886.96. Following the sale, the chief financial officer owned 371,036 shares in the company, valued at $3,888,457.28. This trade represents a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Thomas Siebel sold 453,314 shares of C3.ai stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total value of $4,764,330.14. Following the sale, the chief executive officer owned 722,362 shares of the company's stock, valued at approximately $7,592,024.62. This trade represents a 38.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,117,809 shares of company stock worth $11,724,230 in the last ninety days. 19.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On C3.ai

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Western Wealth Management LLC bought a new position in C3.ai in the 1st quarter worth about $26,000. AdvisorNet Financial Inc bought a new stake in shares of C3.ai during the first quarter valued at approximately $34,000. CoreCap Advisors LLC raised its stake in shares of C3.ai by 34.0% during the second quarter. CoreCap Advisors LLC now owns 6,145 shares of the company's stock valued at $56,000 after acquiring an additional 1,560 shares in the last quarter. Versant Capital Management Inc boosted its holdings in shares of C3.ai by 1,510.1% in the second quarter. Versant Capital Management Inc now owns 6,859 shares of the company's stock valued at $62,000 after purchasing an additional 6,433 shares during the period. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in shares of C3.ai in the fourth quarter valued at approximately $71,000. Institutional investors own 38.96% of the company's stock.

About C3.ai

C3.ai, Inc is an enterprise artificial intelligence software company that develops applications and tools designed to help organizations use AI and machine learning to analyze data, automate processes and support business decision-making. The company's offerings are intended for large commercial enterprises, government agencies and other organizations managing complex operational and data environments.

Its product portfolio includes the C3 AI Platform, which provides capabilities for developing, deploying and operating AI applications, as well as prebuilt enterprise applications.

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