BigBear.ai (NYSE:BBAI) Shares Up 3.8% - Still a Buy?

Key Points

• BigBear.ai shares rose by 3.8%, trading as high as $7.33, with a significant increase in trading volume at 292 million shares exchanged.
• Analysts show mixed sentiments with a current average rating of "Hold" and a price target of $6.00, while HC Wainwright has set a "buy" rating with a target decrease to $8.00.
• BigBear.ai reported a net margin of -269.28% and a revenue decline of 18.3% year-over-year, indicating operational challenges despite beating EPS estimates.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares shot up 3.8% during mid-day trading on Friday . The stock traded as high as $7.33 and last traded at $7.04. 292,913,918 shares changed hands during trading, an increase of 216% from the average session volume of 92,677,891 shares. The stock had previously closed at $6.78.

Analyst Ratings Changes

A number of equities analysts have weighed in on BBAI shares. HC Wainwright cut their price target on shares of BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a research note on Tuesday, August 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of BigBear.ai in a research report on Friday. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $6.00.

BigBear.ai Stock Up 3.8%

The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $3.07 billion, a P/E ratio of -4.89 and a beta of 3.43. The stock's 50 day simple moving average is $6.34 and its 200 day simple moving average is $5.35.

BigBear.ai (NYSE:BBAI - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.07) by $0.01. BigBear.ai had a negative net margin of 269.28% and a negative return on equity of 48.11%. The company had revenue of $32.47 million for the quarter, compared to the consensus estimate of $41.18 million. During the same period last year, the firm posted ($0.06) EPS. The company'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, research analysts predict that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Sean Raymond Ricker sold 11,978 shares of BigBear.ai stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $5.35, for a total value of $64,082.30. Following the sale, the chief financial officer directly owned 296,345 shares in the company, valued at $1,585,445.75. This trade represents a 3.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in BigBear.ai by 9.2% during the first quarter. Vanguard Group Inc. now owns 6,325,571 shares of the company's stock worth $18,091,000 after acquiring an additional 534,963 shares during the period. Jump Financial LLC acquired a new position in BigBear.ai during the 2nd quarter valued at about $37,407,000. Geode Capital Management LLC lifted 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. lifted 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. raised its position in shares of BigBear.ai by 569.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock valued at $6,694,000 after acquiring an additional 1,990,822 shares during the period. 7.55% of the stock is owned by hedge funds and other institutional investors.

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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