BigBear.ai (NYSE:BBAI) Shares Gap Up - What's Next?

Key Points

• BigBear.ai's stock price gapped up from $7.08 to $7.37 at market open and last traded at $7.86, reflecting a growth of 11.4% with a high trading volume of 30,477,881 shares.
• HC Wainwright lowered their price target for BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating, indicating mixed market expectations as two analysts rated it a Buy and two rated it as Hold.
• The company reported a quarterly revenue of $32.47 million, falling short of the $41.18 million consensus estimate and showing an 18.3% decline year-over-year, with an EPS of ($0.06), slightly beating analyst estimates.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $7.08, but opened at $7.37. BigBear.ai shares last traded at $7.86, with a volume of 30,477,881 shares.

Analysts Set New Price Targets

Separately, HC Wainwright reduced their price target on BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a research note on Tuesday, August 12th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $6.00.

BigBear.ai Trading Up 11.4%

The firm has a market capitalization of $2.92 billion, a price-to-earnings ratio of -5.48 and a beta of 3.41. 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 business has a fifty day moving average price of $6.14 and a 200 day moving average price of $4.69.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The company reported ($0.06) EPS for the quarter, topping 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 business had revenue of $32.47 million during the quarter, compared to the consensus estimate of $41.18 million. During the same period in the prior year, the firm posted ($0.06) EPS. The business's revenue for the quarter was down 18.3% on a year-over-year basis. BigBear.ai has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Transactions at BigBear.ai

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

Hedge Funds Weigh In On BigBear.ai

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Flaharty Asset Management LLC purchased a new position in BigBear.ai in the 1st quarter valued at about $26,000. Cornerstone Wealth Management LLC bought a new position in shares of BigBear.ai during the first quarter worth about $29,000. City State Bank bought a new position in shares of BigBear.ai during the first quarter worth about $29,000. Blue Bell Private Wealth Management LLC lifted its position in shares of BigBear.ai by 2,216.0% during the first quarter. Blue Bell Private Wealth Management LLC now owns 11,580 shares of the company's stock worth $33,000 after purchasing an additional 11,080 shares during the last quarter. Finally, Opal Wealth Advisors LLC bought a new position in shares of BigBear.ai during the first quarter worth about $34,000. 7.55% of the stock is owned by hedge funds and other institutional investors.

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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