BigBear.ai (NYSE:BBAI) Shares Up 5.7% - Should You Buy?

Key Points

• Shares rose 5.7% to about $4.01 on Wednesday on lighter-than-average volume; analysts are mixed, with an average "Hold" rating and a consensus price target of $5.50.
• BigBear.ai beat EPS expectations for the quarter ($-0.01 vs. -$0.05) but revenue fell 37.7% year-over-year and the company remains unprofitable with a sharply negative net margin.
• A director sold 80,000 shares (insiders own 0.54%), while major institutions including Vanguard, UBS and State Street significantly increased stakes, leaving hedge funds with about 7.55% ownership.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares rose 5.7% on Wednesday . The company traded as high as $4.05 and last traded at $4.0050. Approximately 36,374,523 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 50,559,082 shares. The stock had previously closed at $3.79.

Analyst Upgrades and Downgrades

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

BigBear.ai Stock 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 fifty day moving average price of $3.79 and a two-hundred day moving average price of $5.36. The company has a market capitalization of $1.92 billion, a price-to-earnings ratio of -4.01 and a beta of 3.47.

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

Insider Activity at BigBear.ai

In other news, Director Pamela Joyce Braden sold 80,000 shares of the business'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 value of $320,000.00. Following the completion of the transaction, the director owned 508,687 shares of the company's stock, valued at $2,034,748. The trade was a 13.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.54% of the stock is currently owned by company insiders.

Institutional Trading of BigBear.ai

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of BigBear.ai by 18.4% during the 4th quarter. Vanguard Group Inc. now owns 32,695,344 shares of the company's stock worth $176,555,000 after purchasing an additional 5,090,508 shares during the period. UBS Group AG grew its position in shares of BigBear.ai by 145.7% in the fourth 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 increased its stake in BigBear.ai by 33.6% in the fourth 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 during the last quarter. Geode Capital Management LLC increased its stake in BigBear.ai by 35.9% in the fourth 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 during the last quarter. Finally, Van ECK Associates Corp purchased a new position in BigBear.ai during the fourth quarter worth about $46,675,000. 7.55% of the stock is owned by hedge funds and other 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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