BigBear.ai (NYSE:BBAI) Shares Down 4.2% - What's Next?

Key Points

• Shares of BigBear.ai dropped 4.2% to about $5.79 on Tuesday, trading as low as $5.78, with volume of ~59.3M shares (down ~38% from the ~95M average).
• Analyst sentiment is mixed—two Buy, two Hold and one Sell—yielding a consensus rating of Hold and an average price target of $6.33.
• Q3 results showed a missed EPS (loss of $0.07 vs. $0.06 expected) while revenue of $33.14M beat estimates but fell 20.1% year-over-year, and the company reported very negative margins and ROE with analysts forecasting a full-year EPS of about ‑$0.28.

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) dropped 4.2% on Tuesday . The stock traded as low as $5.78 and last traded at $5.7940. Approximately 59,319,945 shares were traded during trading, a decline of 38% from the average daily volume of 94,992,602 shares. The stock had previously closed at $6.05.

Wall Street Analyst Weigh In

Several equities analysts recently commented on BBAI shares. Cantor Fitzgerald restated an "overweight" rating and issued a $7.00 price target on shares of BigBear.ai in a research note on Tuesday, November 11th. HC Wainwright reissued a "buy" rating and issued a $8.00 price objective on shares of BigBear.ai in a report on Tuesday, November 11th. Wall Street Zen raised shares of BigBear.ai from a "strong sell" rating to a "hold" rating in a report on Saturday, November 15th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of BigBear.ai in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $6.33.

BigBear.ai Price Performance

The stock has a market cap of $2.53 billion, a P/E ratio of -4.08 and a beta of 3.44. The company's 50 day moving average price is $6.75 and its 200-day moving average price is $6.00. The company has a quick ratio of 3.13, a current ratio of 3.13 and a debt-to-equity ratio of 0.18.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its quarterly earnings results on Monday, November 10th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.01). BigBear.ai had a negative return on equity of 26.11% and a negative net margin of 274.70%.The firm had revenue of $33.14 million for the quarter, compared to the consensus estimate of $31.82 million. During the same quarter in the previous year, the business posted ($0.05) EPS. The firm's revenue for the quarter was down 20.1% compared to the same quarter last year. As a group, sell-side analysts expect that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Activity

In related news, Director Dorothy D. Hayes sold 22,000 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $6.08, for a total value of $133,760.00. Following the completion of the sale, the director directly owned 236,150 shares of the company's stock, valued at approximately $1,435,792. This represents a 8.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.54% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On BigBear.ai

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BBAI. CWM LLC boosted its position in BigBear.ai by 237.5% during the third quarter. CWM LLC now owns 4,640 shares of the company's stock worth $30,000 after purchasing an additional 3,265 shares during the period. Hazlett Burt & Watson Inc. raised its position in shares of BigBear.ai by 3,355.6% in the third quarter. Hazlett Burt & Watson Inc. now owns 4,976 shares of the company's stock valued at $32,000 after purchasing an additional 4,832 shares during the period. Nisa Investment Advisors LLC lifted its stake in shares of BigBear.ai by 68.4% during the 2nd quarter. Nisa Investment Advisors LLC now owns 6,222 shares of the company's stock valued at $42,000 after buying an additional 2,527 shares in the last quarter. Hantz Financial Services Inc. boosted its holdings in BigBear.ai by 2,242.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 8,200 shares of the company's stock worth $53,000 after buying an additional 7,850 shares during the period. Finally, Flaharty Asset Management LLC bought a new position in BigBear.ai in the 1st quarter worth approximately $26,000. 7.55% of the stock is currently owned by institutional investors.

About BigBear.ai

BigBear.ai Holdings, Inc provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services.

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