BigBear.ai (NYSE:BBAI) Shares Gap Down After Analyst Downgrade

Key Points

• BigBear.ai's shares gapped down to $4.85 following a disappointing earnings report, missing analysts' expectations with an EPS of ($0.71) compared to the consensus of ($0.07).
• The company reported a 32.3% decline in revenue year-over-year, with $32.47 million for the quarter against expectations of $41.18 million.
• Following the earnings announcement, HC Wainwright lowered the price target for BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating on the stock.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s stock price gapped down before the market opened on Tuesday after HC Wainwright lowered their price target on the stock from $9.00 to $8.00. The stock had previously closed at $7.09, but opened at $4.85. HC Wainwright currently has a buy rating on the stock. BigBear.ai shares last traded at $5.16, with a volume of 67,153,453 shares trading hands.

Insiders Place Their Bets

In other BigBear.ai news, CFO Julie Peffer sold 50,000 shares of BigBear.ai stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $4.40, for a total transaction of $220,000.00. Following the completion of the sale, the chief financial officer directly owned 634,153 shares in the company, valued at $2,790,273.20. The trade was a 7.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of BigBear.ai

Several institutional investors and hedge funds have recently made changes to their positions in the stock. LPL Financial LLC grew its position in BigBear.ai by 316.0% in the fourth quarter. LPL Financial LLC now owns 149,098 shares of the company's stock worth $663,000 after acquiring an additional 113,253 shares in the last quarter. JPMorgan Chase & Co. increased its stake in BigBear.ai by 12.3% in the fourth quarter. JPMorgan Chase & Co. now owns 51,166 shares of the company's stock valued at $228,000 after acquiring an additional 5,591 shares during the last quarter. Geode Capital Management LLC increased its stake in BigBear.ai by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 2,197,296 shares of the company's stock valued at $9,780,000 after acquiring an additional 38,858 shares during the last quarter. Wells Fargo & Company MN increased its stake in BigBear.ai by 5.1% in the fourth quarter. Wells Fargo & Company MN now owns 78,458 shares of the company's stock valued at $349,000 after acquiring an additional 3,797 shares during the last quarter. Finally, Invesco Ltd. increased its stake in BigBear.ai by 8.3% in the fourth quarter. Invesco Ltd. now owns 21,149 shares of the company's stock valued at $94,000 after acquiring an additional 1,629 shares during the last quarter. Hedge funds and other institutional investors own 7.55% of the company's stock.

BigBear.ai Trading Down 0.9%

The firm has a market cap of $1.68 billion, a P/E ratio of -4.01 and a beta of 3.44. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.91 and a quick ratio of 1.66. The stock has a 50 day moving average of $6.14 and a 200 day moving average of $4.86.

BigBear.ai (NYSE:BBAI - Get Free Report) last announced its quarterly earnings data on Monday, August 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. BigBear.ai had a negative return on equity of 48.11% and a negative net margin of 269.28%. The firm had revenue of $32.47 million for the quarter, compared to analysts' expectations of $41.18 million. During the same period last year, the firm earned ($0.06) earnings per share. The company's revenue for the quarter was down 18.3% compared to the same quarter last year. As a group, equities research analysts predict that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

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.