BigBear.ai (NYSE:BBAI) Trading Down 5.1% - What's Next?

Key Points

• BigBear.ai's stock experienced a decline of 5.1%, trading as low as $6.77 and closing at $6.79, with a significant drop in trading volume compared to its average.
• HC Wainwright upgraded BigBear.ai's price objective from $6.00 to $9.00 and assigned a "buy" rating, indicating a positive outlook despite the current stock drop.
• In its latest earnings report, BigBear.ai reported a loss of ($0.10) EPS, missing analysts' estimates, and its revenue of $34.76 million fell short of forecasts.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) dropped 5.1% during trading on Tuesday . The stock traded as low as $6.77 and last traded at $6.79. Approximately 26,875,557 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 88,533,125 shares. The stock had previously closed at $7.15.

Analysts Set New Price Targets

Separately, HC Wainwright raised their target price on BigBear.ai from $6.00 to $9.00 and gave the stock a "buy" rating in a research note on Tuesday, July 1st.

BigBear.ai Price Performance

The firm has a market capitalization of $1.87 billion, a P/E ratio of -8.22 and a beta of 3.46. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.66 and a current ratio of 1.66. The business has a 50 day simple moving average of $5.66 and a two-hundred day simple moving average of $4.69.

BigBear.ai (NYSE:BBAI - Get Free Report) last announced its earnings results on Thursday, May 1st. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.04). The business had revenue of $34.76 million during the quarter, compared to the consensus estimate of $36.26 million. BigBear.ai had a negative return on equity of 57.83% and a negative net margin of 121.31%. BigBear.ai's revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.67) earnings per share. On average, sell-side analysts expect that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current fiscal year.

Insiders Place Their Bets

In other BigBear.ai news, CAO Sean Raymond Ricker sold 14,063 shares of BigBear.ai stock in a transaction dated Wednesday, May 7th. The stock was sold at an average price of $3.05, for a total transaction of $42,892.15. Following the completion of the sale, the chief accounting officer owned 270,061 shares of the company's stock, valued at $823,686.05. The trade was a 4.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Dorothy D. Hayes sold 26,000 shares of BigBear.ai stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $3.60, for a total value of $93,600.00. Following the completion of the transaction, the director owned 255,239 shares in the company, valued at approximately $918,860.40. This represents a 9.24% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 165,987 shares of company stock valued at $614,608 over the last 90 days. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On BigBear.ai

Hedge funds and other institutional investors have recently modified their holdings of the stock. Commonwealth Equity Services LLC lifted its stake in shares of BigBear.ai by 198.6% in the 4th quarter. Commonwealth Equity Services LLC now owns 93,220 shares of the company's stock valued at $415,000 after acquiring an additional 61,998 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of BigBear.ai by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 5,790,608 shares of the company's stock worth $25,768,000 after purchasing an additional 23,994 shares during the last quarter. JPMorgan Chase & Co. grew its stake in shares of BigBear.ai by 12.3% in the fourth quarter. JPMorgan Chase & Co. now owns 51,166 shares of the company's stock worth $228,000 after purchasing an additional 5,591 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of BigBear.ai by 21.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 39,966 shares of the company's stock worth $178,000 after purchasing an additional 7,177 shares during the last quarter. Finally, Wells Fargo & Company MN grew its stake in shares of BigBear.ai by 5.1% in the fourth quarter. Wells Fargo & Company MN now owns 78,458 shares of the company's stock worth $349,000 after purchasing an additional 3,797 shares during the last quarter. Institutional investors own 7.55% of the company's stock.

BigBear.ai Company Profile

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.