DA Davidson Reiterates "Underperform" Rating for C3.ai (NYSE:AI)

Key Points

• DA Davidson reiterated an “Underperform” rating on C3.ai with a $7 price target, implying approximately 35.7% downside from the prior close.
• Analyst sentiment remains negative overall: C3.ai has an average “Reduce” rating and a consensus price target of $10.09, with six Sell, four Hold, and one Buy recommendation.
• C3.ai reported a quarterly loss of $0.33 per share, though it beat estimates, while revenue fell 52.5% year over year to $51.6 million. Insiders have sold about 1.24 million shares worth $13.1 million over the past 90 days.

C3.ai (NYSE:AI - Get Free Report)'s stock had its "underperform" rating reissued by analysts at DA Davidson in a research report issued to clients and investors on Tuesday, Benzinga reports. They presently have a $7.00 price objective on the stock. DA Davidson's price target suggests a potential downside of 35.72% from the company's previous close.

A number of other research analysts have also issued reports on AI. Wedbush reiterated an "outperform" rating and issued a $15.00 target price on shares of C3.ai in a report on Thursday, June 4th. Needham & Company LLC reiterated a "hold" rating on shares of C3.ai in a research note on Thursday, June 4th. KeyCorp reissued an "underweight" rating on shares of C3.ai in a research report on Thursday, June 4th. UBS Group boosted their price target on shares of C3.ai from $9.00 to $12.00 and gave the stock a "neutral" rating in a report on Thursday, June 4th. Finally, Weiss Ratings raised shares of C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat, C3.ai presently has an average rating of "Reduce" and an average target price of $10.09.

C3.ai Stock Up 3.4%

Shares of NYSE AI opened at $10.89 on Tuesday. The business's 50 day moving average is $9.43 and its two-hundred day moving average is $9.43. C3.ai has a 52-week low of $7.68 and a 52-week high of $20.22. The firm has a market cap of $1.69 billion, a price-to-earnings ratio of -3.26 and a beta of 2.08.

C3.ai (NYSE:AI - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The company reported ($0.33) earnings per share for the quarter, beating analysts' consensus estimates of ($0.38) by $0.05. The business had revenue of $51.60 million during the quarter, compared to analysts' expectations of $51.60 million. C3.ai had a negative return on equity of 62.44% and a negative net margin of 187.95%.The company's revenue was down 52.5% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.16) earnings per share. Analysts anticipate that C3.ai will post -2.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other C3.ai news, CEO Thomas M. Siebel sold 453,314 shares of C3.ai stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 722,362 shares in the company, valued at approximately $7,592,024.62. This trade represents a 38.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Bradley Ehikian sold 50,542 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were 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 directly owned 651,130 shares in the company, valued at approximately $6,153,178.50. The trade was a 7.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 1,241,760 shares of company stock valued at $13,084,895. 26.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On C3.ai

A number of institutional investors have recently added to or reduced their stakes in the business. Western Wealth Management LLC acquired a new position in C3.ai during the first quarter worth $26,000. Larson Financial Group LLC lifted its position in shares of C3.ai by 683.6% during the 3rd 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. Farther Finance Advisors LLC increased its stake in C3.ai by 66.1% in the 4th quarter. Farther Finance Advisors LLC now owns 2,141 shares of the company's stock valued at $29,000 after purchasing an additional 852 shares in the last quarter. Parallel Advisors LLC grew its holdings in C3.ai by 76.4% in the third quarter. Parallel Advisors LLC now owns 1,849 shares of the company's stock valued at $32,000 after purchasing an additional 801 shares during the last quarter. Finally, Comerica Bank boosted its position in shares of C3.ai by 839.1% in the 4th quarter. Comerica Bank now owns 2,423 shares of the company's stock worth $33,000 after buying an additional 2,165 shares in the last quarter. Hedge funds and other institutional investors own 38.96% of the company's stock.

C3.ai Company Profile

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.

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