BigBear.ai (NYSE:BBAI) Shares Up 2.6% - Should You Buy?

Key Points

• Shares rose 2.6% to about $3.85 on Friday, but BigBear.ai reported Q results showing an EPS beat (-$0.01 vs. -$0.05) while revenue fell 37.7% year-over-year to $27.3 million and the business has a very negative net margin (−230.21%) and negative P/E.
• Analyst sentiment is mixed (one Buy, one Hold, one Sell) with an average target of $5.50, while insiders and institutions show limited conviction — a director sold 80,000 shares at ~$4 and institutional ownership is about 7.55%.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price rose 2.6% during trading on Friday . The stock traded as high as $4.13 and last traded at $3.8470. Approximately 45,926,910 shares traded hands during trading, a decline of 10% from the average daily volume of 51,237,602 shares. The stock had previously closed at $3.75.

Analyst Upgrades and Downgrades

BBAI has been the topic of several analyst reports. Weiss Ratings reissued a "sell (d-)" rating on shares of BigBear.ai in a research report on Wednesday, January 21st. Cantor Fitzgerald lowered 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 report on Tuesday, March 3rd. HC Wainwright lowered their target price on shares of BigBear.ai from $8.00 to $6.00 and set a "buy" rating on the stock in a research report on Tuesday, March 3rd. Finally, Wall Street Zen downgraded shares of BigBear.ai from a "hold" rating to a "sell" rating in a research report on Saturday, January 10th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to 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 company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $1.83 billion, a price-to-earnings ratio of -3.85 and a beta of 3.47. The company's 50-day simple moving average is $3.84 and its 200 day simple moving average is $5.44.

BigBear.ai (NYSE:BBAI - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.04. BigBear.ai had a negative net margin of 230.21% and a negative return on equity of 18.22%. The firm had revenue of $27.30 million for the quarter, compared to the consensus estimate of $33.31 million. During the same period in the prior year, the business posted ($0.43) earnings per share. The business's quarterly revenue was down 37.7% on a year-over-year basis. Equities research analysts forecast that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

Insider Transactions at BigBear.ai

In other BigBear.ai news, Director Pamela Joyce Braden sold 80,000 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $4.00, for a total transaction of $320,000.00. Following the completion of the sale, the director directly owned 508,687 shares in the company, valued at $2,034,748. This represents a 13.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.54% of the stock is owned by company insiders.

Institutional Investors Weigh In On BigBear.ai

Hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC boosted its holdings in BigBear.ai by 617.5% during the fourth quarter. Root Financial Partners LLC now owns 5,381 shares of the company's stock valued at $29,000 after acquiring an additional 4,631 shares during the period. CWM LLC lifted its stake in shares of BigBear.ai by 237.5% in the third quarter. CWM LLC now owns 4,640 shares of the company's stock valued at $30,000 after buying an additional 3,265 shares during the period. PNC Financial Services Group Inc. lifted its stake in shares of BigBear.ai by 150.9% in the fourth quarter. PNC Financial Services Group Inc. now owns 5,640 shares of the company's stock valued at $30,000 after buying an additional 3,392 shares during the period. Hazlett Burt & Watson Inc. lifted its stake in shares of BigBear.ai by 3,355.6% in the third quarter. Hazlett Burt & Watson Inc. now owns 4,976 shares of the company's stock valued at $32,000 after buying an additional 4,832 shares during the period. Finally, HM Payson & Co. lifted its stake in shares of BigBear.ai by 616.9% in the fourth quarter. HM Payson & Co. now owns 7,169 shares of the company's stock valued at $39,000 after buying an additional 6,169 shares during the period. 7.55% of the stock is currently owned by institutional investors.

BigBear.ai Company Profile

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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