BigBear.ai (NYSE:BBAI) Shares Down 8.9% - Should You Sell?

Key Points

• Shares fell 8.9% intraday to about $5.03 on high volume (85.7M shares), down from a prior close of $5.52.
• Analysts are mixed — the consensus rating is "Hold" with an average price target of $6.00 after recent downgrades from some firms and a lone buy from HC Wainwright.
• Fundamentals show weakness (negative EPS, a -274.7% net margin and quarterly revenue down ~20% YoY), though liquidity ratios are strong (quick/current ~3.13); insider sales and low institutional ownership (0.54% insiders, 7.55% institutions) are additional cautions.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) fell 8.9% during mid-day trading on Friday . The stock traded as low as $4.97 and last traded at $5.03. 85,710,499 shares changed hands during trading, an increase of 2% from the average session volume of 84,057,797 shares. The stock had previously closed at $5.52.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on BBAI shares. Wall Street Zen cut BigBear.ai from a "hold" rating to a "sell" rating in a research note on Saturday, January 10th. Cantor Fitzgerald cut shares of BigBear.ai from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $7.00 to $6.00 in a report on Wednesday, January 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of BigBear.ai in a research report on Wednesday, January 21st. Finally, HC Wainwright reissued a "buy" rating and set a $8.00 target price on shares of BigBear.ai in a research report on Tuesday, November 11th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, BigBear.ai has a consensus rating of "Hold" and an average target price of $6.00.

BigBear.ai Stock Down 8.9%

The firm has a market capitalization of $2.20 billion, a price-to-earnings ratio of -3.54 and a beta of 3.46. The company has a quick ratio of 3.13, a current ratio of 3.13 and a debt-to-equity ratio of 0.18. The company's 50 day moving average price is $6.06 and its 200 day moving average price is $6.33.

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

Insider Activity at BigBear.ai

In related news, CFO Sean Raymond Ricker sold 5,000 shares of BigBear.ai stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $7.06, for a total transaction of $35,300.00. Following the completion of the transaction, the chief financial officer directly owned 488,716 shares in the company, valued at approximately $3,450,334.96. This trade represents a 1.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Dorothy D. Hayes sold 22,000 shares of BigBear.ai stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $6.08, for a total transaction of $133,760.00. Following the transaction, the director directly owned 236,150 shares of the company's stock, valued at approximately $1,435,792. This trade represents a 8.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.54% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. CWM LLC boosted its holdings in BigBear.ai by 237.5% in the 3rd quarter. CWM LLC now owns 4,640 shares of the company's stock worth $30,000 after buying an additional 3,265 shares during the last quarter. Hazlett Burt & Watson Inc. raised its holdings in shares of BigBear.ai by 3,355.6% during the third quarter. Hazlett Burt & Watson Inc. now owns 4,976 shares of the company's stock valued at $32,000 after acquiring an additional 4,832 shares during the last quarter. Nisa Investment Advisors LLC lifted its position in shares of BigBear.ai by 68.4% in the second quarter. Nisa Investment Advisors LLC now owns 6,222 shares of the company's stock valued at $42,000 after acquiring an additional 2,527 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in shares of BigBear.ai by 2,242.9% in the third quarter. Hantz Financial Services Inc. now owns 8,200 shares of the company's stock worth $53,000 after acquiring an additional 7,850 shares during the last quarter. Finally, M&T Bank Corp purchased a new stake in shares of BigBear.ai during the fourth quarter worth approximately $55,000. Hedge funds and other institutional investors 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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