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

Key Points

• Shares down 4.2% — BigBear.ai traded as low as $3.50 and last at $3.575 during mid-day, with ~32.2M shares changing hands (about 46% below average daily volume).
• Analysts cutting targets and ratings: multiple firms reduced price targets or ratings (Wall Street Zen to sell; HC Wainwright cut PT to $6; Cantor Fitzgerald to $5; Weiss reiterated sell), leaving a consensus rating of "Hold" and an average target of $5.50.
• Earnings mixed — BigBear.ai reported EPS of ($0.01) which beat estimates, but revenue missed at $27.3M versus $33.31M expected and was down 37.7% year-over-year, with a deeply negative net margin and return on equity.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares were down 4.2% during mid-day trading on Friday . The company traded as low as $3.50 and last traded at $3.5750. Approximately 32,226,723 shares traded hands during trading, a decline of 46% from the average daily volume of 59,585,336 shares. The stock had previously closed at $3.73.

Analysts Set New Price Targets

Several research analysts have weighed in on BBAI shares. Wall Street Zen lowered BigBear.ai from a "hold" rating to a "sell" rating in a research report on Saturday, January 10th. HC Wainwright lowered their price target on BigBear.ai from $8.00 to $6.00 and set a "buy" rating for the company in a research note on Tuesday, March 3rd. Cantor Fitzgerald dropped their price objective on BigBear.ai from $6.00 to $5.00 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of BigBear.ai in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $5.50.

BigBear.ai Stock Performance

The stock has a fifty day moving average price of $4.72 and a 200 day moving average price of $5.77. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 0.16. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of -3.58 and a beta of 3.49.

BigBear.ai (NYSE:BBAI - Get Free Report) last announced its earnings results on Monday, March 2nd. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $0.04. The firm had revenue of $27.30 million during the quarter, compared to analysts' expectations of $33.31 million. BigBear.ai had a negative return on equity of 18.22% and a negative net margin of 230.21%.The company's revenue was down 37.7% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.43) earnings per share. As a group, analysts predict that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Activity

In other news, Director Pamela Joyce Braden sold 80,000 shares of BigBear.ai stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $4.00, for a total value of $320,000.00. Following the transaction, the director directly owned 508,687 shares in the company, valued at approximately $2,034,748. The trade was a 13.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.54% of the company's stock.

Institutional Trading of BigBear.ai

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC bought a new position in BigBear.ai in the 4th quarter worth approximately $130,000. World Investment Advisors acquired a new stake in shares of BigBear.ai in the fourth quarter worth $56,000. Caitong International Asset Management Co. Ltd increased its position in BigBear.ai by 77.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 13,756 shares of the company's stock worth $74,000 after acquiring an additional 5,987 shares during the period. Invesco Ltd. raised its stake in BigBear.ai by 56.5% during the 4th quarter. Invesco Ltd. now owns 250,973 shares of the company's stock valued at $1,355,000 after purchasing an additional 90,612 shares during the last quarter. Finally, State of Tennessee Department of Treasury acquired a new position in BigBear.ai during the 4th quarter valued at $149,000. Institutional investors and hedge funds own 7.55% of the company's stock.

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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