BigBear.ai (NYSE:BBAI) Shares Up 3.8% on Better-Than-Expected Earnings

Key Points

• Shares rose 3.8% after BigBear.ai reported ($0.01) EPS, beating estimates by $0.04, but revenue of $27.3 million missed the $33.31 million consensus and the company remains unprofitable with a negative net margin and ROE.
• Analyst coverage is mixed—MarketBeat shows a consensus rating of "Hold" with an average target of $6.00 after recent downgrades and a lone buy rating, reflecting divided Wall Street views.
• Institutional investors materially increased positions in the fourth quarter (notably Vanguard, UBS and State Street), while insiders hold just 0.54% of shares and the CFO sold 5,000 shares in December.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) rose 3.8% on Monday following a stronger than expected earnings report. The stock traded as high as $4.19 and last traded at $4.11. Approximately 49,666,923 shares traded hands during mid-day trading, a decline of 25% from the average daily volume of 66,462,453 shares. The stock had previously closed at $3.96.

The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.04. BigBear.ai had a negative return on equity of 26.11% and a negative net margin of 274.70%.The firm had revenue of $27.30 million during the quarter, compared to analyst estimates of $33.31 million.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BBAI. Wall Street Zen downgraded shares of BigBear.ai from a "hold" rating to a "sell" rating in a research note on Saturday, January 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of BigBear.ai in a research report on Wednesday, January 21st. HC Wainwright reiterated a "buy" rating and issued a $8.00 target price on shares of BigBear.ai in a report on Tuesday, November 11th. Finally, Cantor Fitzgerald lowered BigBear.ai from an "overweight" rating to a "neutral" rating and dropped their price target for the stock from $7.00 to $6.00 in a research note on Wednesday, January 7th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, BigBear.ai currently has a consensus rating of "Hold" and an average target price of $6.00.

Insider Activity at BigBear.ai

In related news, CFO Sean Raymond Ricker sold 5,000 shares of the business's stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $7.06, for a total transaction of $35,300.00. Following the transaction, the chief financial officer directly owned 488,716 shares of the company's stock, valued at approximately $3,450,334.96. The trade was a 1.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On BigBear.ai

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake 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 buying an additional 5,090,508 shares during the last quarter. UBS Group AG increased its position in shares of BigBear.ai by 145.7% in the 4th quarter. UBS Group AG now owns 10,386,833 shares of the company's stock worth $56,089,000 after purchasing an additional 6,158,665 shares during the last quarter. State Street Corp raised its stake in shares of BigBear.ai by 33.6% in the 4th quarter. State Street Corp now owns 10,279,145 shares of the company's stock valued at $55,507,000 after purchasing an additional 2,584,278 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of BigBear.ai by 35.9% in the 4th quarter. Geode Capital Management LLC now owns 10,247,877 shares of the company's stock valued at $55,347,000 after purchasing an additional 2,706,195 shares in the last quarter. Finally, Van ECK Associates Corp bought a new position in shares of BigBear.ai during the fourth quarter worth about $46,675,000. 7.55% of the stock is owned by institutional investors and hedge funds.

BigBear.ai Stock Up 3.8%

The company has a quick ratio of 3.13, a current ratio of 3.13 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $1.79 billion, a price-to-earnings ratio of -2.89 and a beta of 3.49. The stock has a 50 day moving average of $5.25 and a 200 day moving average of $5.92.

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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