BigBear.ai (NYSE:BBAI) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded BigBear.ai from sell to hold, adding to a mixed analyst picture that currently centers on a consensus Hold rating and a $5.50 price target.
• The stock’s latest quarter showed better-than-expected EPS of -$0.01, but revenue missed estimates and fell 37.7% year over year, underscoring ongoing profitability pressure.
• Recent developments suggest improving business momentum, including backlog growth and a $53 million classified award, while insiders have also been selling shares recently.

BigBear.ai (NYSE:BBAI - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

BBAI has been the topic of a number of other research reports. Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a report on Monday, April 20th. HC Wainwright lowered their price target on BigBear.ai from $8.00 to $6.00 and set a "buy" rating on the stock in a report on Tuesday, March 3rd. Finally, Cantor Fitzgerald reduced their target price on BigBear.ai from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $5.50.

BigBear.ai Stock Performance

BBAI opened at $4.18 on Friday. The stock has a market cap of $2.00 billion, a P/E ratio of -4.81 and a beta of 3.25. The company has a debt-to-equity ratio of 0.01, a current ratio of 6.08 and a quick ratio of 1.78. The stock's 50 day simple moving average is $3.77 and its 200 day simple moving average is $5.09. BigBear.ai has a 1-year low of $3.01 and a 1-year high of $9.39.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its quarterly earnings results on Monday, March 2nd. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.04. The business had revenue of $27.30 million for the quarter, compared to analysts' expectations of $33.31 million. BigBear.ai had a negative return on equity of 16.02% and a negative net margin of 226.69%.The company's revenue was down 37.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.43) EPS. As a group, equities analysts anticipate that BigBear.ai will post -0.2 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Pamela Joyce Braden sold 80,000 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $4.00, for a total value of $320,000.00. Following the sale, the director owned 508,687 shares of the company's stock, valued at approximately $2,034,748. This represents a 13.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Dorothy D. Hayes sold 15,000 shares of the company's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $4.11, for a total value of $61,650.00. Following the completion of the sale, the director directly owned 204,150 shares in the company, valued at approximately $839,056.50. The trade was a 6.84% decrease in their position. The SEC filing for this sale provides additional information. 0.54% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On BigBear.ai

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Cantor Fitzgerald L. P. purchased a new position in shares of BigBear.ai during the 3rd quarter worth $1,756,000. M&T Bank Corp purchased a new position in shares of BigBear.ai during the 4th quarter worth $5,576,000. PFG Investments LLC purchased a new position in shares of BigBear.ai during the 3rd quarter worth $1,593,000. Vanguard Group Inc. lifted its stake in shares of BigBear.ai by 32.6% during the 3rd quarter. Vanguard Group Inc. now owns 27,604,836 shares of the company's stock worth $179,984,000 after purchasing an additional 6,790,890 shares during the period. Finally, UBS Group AG lifted its stake in shares of BigBear.ai by 145.7% during the 4th quarter. UBS Group AG now owns 10,386,833 shares of the company's stock worth $56,089,000 after purchasing an additional 6,158,665 shares during the period. Hedge funds and other institutional investors own 7.55% of the company's stock.

BigBear.ai News Summary

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

• Positive Sentiment: BigBear.ai’s Q1 2026 report highlighted stronger gross margins, with revenue mix shifting toward higher-margin technology contracts and support from its Ask Sage generative AI platform. BigBear.ai (BBAI) Is Up 14.4% After Stronger Margins And Backlog Growth - Has The Bull Case Changed?
• Positive Sentiment: The company’s backlog increased, helped by a $53 million sole-source prime classified award, which suggests better near-term revenue visibility. BigBear.ai (BBAI) Is Up 14.4% After Stronger Margins And Backlog Growth - Has The Bull Case Changed?
• Positive Sentiment: Several recent articles argue BBAI could have meaningful upside from current levels, with one note assigning a $5.33 target and another suggesting the stock could rise more than 40% over the next year. BigBear.ai Holdings, Inc. NYSE: BBAI Just Reported, And Analysts Assigned A US$5.33 Price Target
• Neutral Sentiment: Analysts at Northland Securities slightly lowered earnings estimates for fiscal 2026 and Q4 2026, reflecting caution around profitability rather than a major business deterioration.
• Negative Sentiment: Despite margin improvement, BigBear.ai still posted a sizeable net loss, and higher operating expenses continue to weigh on profitability. Can BigBear.ai's AI Mix Drive Stronger Margins in 2026?

About BigBear.ai

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.

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