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

Key Points

• BigBear.ai's stock price declined from $7.59 to $7.09 at open, currently trading at $7.14 with a high trading volume of over 28 million shares.
• Analysts have reduced BigBear.ai's target price from $9.00 to $8.00 while maintaining a "buy" rating, but the consensus target price is only $6.00.
• BigBear.ai reported a negative net margin of 269.28% and a revenue decline of 18.3% year-over-year, which raises concerns about its financial health.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $7.59, but opened at $7.09. BigBear.ai shares last traded at $7.14, with a volume of 28,274,466 shares.

Analysts Set New Price Targets

Separately, HC Wainwright dropped their target price on BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, August 12th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, BigBear.ai has an average rating of "Moderate Buy" and a consensus target price of $6.00.

BigBear.ai Stock Performance

The firm's 50 day simple moving average is $6.17 and its 200-day simple moving average is $4.74. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.91 and a current ratio of 1.91. The company has a market capitalization of $2.69 billion, a price-to-earnings ratio of -5.02 and a beta of 3.40.

BigBear.ai (NYSE:BBAI - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.01. BigBear.ai had a negative net margin of 269.28% and a negative return on equity of 48.11%. The business had revenue of $32.47 million for the quarter, compared to analysts' expectations of $41.18 million. During the same period in the previous year, the company posted ($0.06) EPS. BigBear.ai's revenue was down 18.3% on a year-over-year basis. BigBear.ai has set its FY 2025 guidance at EPS. Analysts expect that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

Insider Activity at BigBear.ai

In other news, CFO Sean Raymond Ricker sold 11,978 shares of the company's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $5.35, for a total transaction of $64,082.30. Following the completion of the transaction, the chief financial officer owned 296,345 shares of the company's stock, valued at approximately $1,585,445.75. This represents a 3.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. grew its stake in BigBear.ai by 569.0% during the first quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock worth $6,694,000 after buying an additional 1,990,822 shares during the last quarter. Baird Financial Group Inc. bought a new stake in BigBear.ai during the first quarter worth about $286,000. Ameriprise Financial Inc. bought a new stake in BigBear.ai during the fourth quarter worth about $81,000. ProShare Advisors LLC grew its stake in BigBear.ai by 51.5% during the fourth quarter. ProShare Advisors LLC now owns 29,077 shares of the company's stock worth $129,000 after buying an additional 9,879 shares during the last quarter. Finally, Swiss National Bank bought a new stake in BigBear.ai during the first quarter worth about $1,045,000. Institutional investors and hedge funds own 7.55% of the company's stock.

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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