BigBear.ai (NYSE:BBAI) Shares Up 10.9% - Still a Buy?

Key Points

• BigBear.ai shares jumped 10.9% to about $4.14 on Tuesday, with roughly 67.95 million shares traded—about 36% above average volume.
• Analyst sentiment is mixed—one Buy, one Hold and one Sell—resulting in an average rating of Hold and an average target price of $5.50 after recent cuts.
• Fundamentals remain weak: Q1 EPS of ($0.01) beat estimates but revenue fell to $27.3M (down 37.7% YoY), the company posts negative margins and ROE, and analysts expect about -0.3 EPS for the year.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shot up 10.9% during trading on Tuesday . The company traded as high as $4.16 and last traded at $4.1370. 67,945,753 shares changed hands during trading, an increase of 36% from the average session volume of 49,841,781 shares. The stock had previously closed at $3.73.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on BBAI shares. Wall Street Zen lowered shares of BigBear.ai from a "hold" rating to a "sell" rating in a research report on Saturday, January 10th. Cantor Fitzgerald dropped their target price on shares of BigBear.ai from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. HC Wainwright reduced their target price on shares of BigBear.ai from $8.00 to $6.00 and set a "buy" rating for the company in a research report on Tuesday, March 3rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a research note on Monday, April 20th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $5.50.

BigBear.ai Price Performance

The firm has a 50 day moving average price of $3.75 and a two-hundred day moving average price of $5.25. The company has a market cap of $1.98 billion, a P/E ratio of -4.14 and a beta of 3.47. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.78 and a current ratio of 1.78.

BigBear.ai (NYSE:BBAI - Get Free Report) last announced its quarterly earnings data on Monday, March 2nd. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.04. The business had revenue of $27.30 million for the quarter, compared to analysts' expectations of $33.31 million. BigBear.ai had a negative return on equity of 18.22% and a negative net margin of 230.21%.The firm's quarterly revenue was down 37.7% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.43) EPS. On average, analysts predict that BigBear.ai Holdings, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at BigBear.ai

In related news, Director Pamela Joyce Braden sold 80,000 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $4.00, for a total transaction of $320,000.00. Following the sale, the director directly owned 508,687 shares in the company, valued at approximately $2,034,748. This represents a 13.59% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.54% of the company's stock.

Institutional Investors Weigh In On BigBear.ai

A number of hedge funds and other institutional investors have recently bought and sold shares of BBAI. Vanguard Group Inc. boosted its holdings in shares of BigBear.ai by 18.4% in the fourth quarter. Vanguard Group Inc. now owns 32,695,344 shares of the company's stock worth $176,555,000 after acquiring an additional 5,090,508 shares during the period. UBS Group AG raised its stake in shares of BigBear.ai by 145.7% during the 4th quarter. UBS Group AG now owns 10,386,833 shares of the company's stock valued at $56,089,000 after purchasing an additional 6,158,665 shares during the period. State Street Corp lifted its holdings in BigBear.ai by 33.6% during the 4th quarter. State Street Corp now owns 10,279,145 shares of the company's stock worth $55,507,000 after purchasing an additional 2,584,278 shares in the last quarter. Geode Capital Management LLC boosted its stake in BigBear.ai by 35.9% in the 4th quarter. Geode Capital Management LLC now owns 10,247,877 shares of the company's stock worth $55,347,000 after purchasing an additional 2,706,195 shares during the period. Finally, Van ECK Associates Corp bought a new position in BigBear.ai in the 4th quarter worth about $46,675,000. 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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