BigBear.ai (NYSE:BBAI) Shares Gap Up - Here's Why

Key Points

• BigBear.ai shares experienced a significant gap up at the market opening, rising from a previous close of $4.87 to $5.19, with a trading volume of over 33 million shares.
• Analysts have a mixed outlook on the stock, with HC Wainwright lowering its price target to $8.00 while maintaining a "buy" rating, contributing to a consensus "Moderate Buy" rating and a target price of $6.00.
• The company reported a quarterly loss of $0.06 per share, beating estimates but showing a year-over-year revenue decline of 18.3%, prompting analysts to forecast a projected EPS of -0.28 for the current year.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $4.87, but opened at $5.19. BigBear.ai shares last traded at $5.16, with a volume of 33,903,639 shares.

Analyst Ratings Changes

Separately, HC Wainwright cut their price objective on shares of BigBear.ai from $9.00 to $8.00 and set a "buy" rating for the company in a research 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's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $6.00.

BigBear.ai Stock Performance

The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.42. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of -3.53 and a beta of 3.40. The company has a 50 day simple moving average of $6.31 and a 200 day simple moving average of $4.64.

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

Insider Buying and Selling

In other BigBear.ai news, CFO Sean Raymond Ricker sold 11,978 shares of the business's stock in a transaction dated Wednesday, August 27th. The stock was 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. The trade was a 3.88% 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 the SEC website. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of BigBear.ai by 9.2% in the first quarter. Vanguard Group Inc. now owns 6,325,571 shares of the company's stock valued at $18,091,000 after buying an additional 534,963 shares during the period. Jump Financial LLC acquired a new stake in BigBear.ai during the 2nd quarter valued at approximately $37,407,000. Geode Capital Management LLC increased its position in BigBear.ai by 125.2% during the 2nd quarter. Geode Capital Management LLC now owns 5,074,311 shares of the company's stock valued at $34,456,000 after purchasing an additional 2,820,698 shares during the period. JPMorgan Chase & Co. increased its position in BigBear.ai by 3,252.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,398,419 shares of the company's stock valued at $16,285,000 after purchasing an additional 2,326,883 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in BigBear.ai by 569.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock valued at $6,694,000 after purchasing an additional 1,990,822 shares during the period. Institutional investors and hedge funds 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.

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