BigBear.ai (NYSE:BBAI) Shares Up 7.4% - Still a Buy?

Key Points

• BigBear.ai shares rose 7.4% to $7.01 during mid-day trading, with a significant trading volume of approximately 90 million shares.
• HC Wainwright has reduced its price target on BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating, amidst mixed ratings from other analysts.
• The company reported a quarterly loss of ($0.06) EPS, exceeding expectations, but its revenue of $32.47 million fell short of the consensus estimate of $41.18 million.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) was up 7.4% during mid-day trading on Wednesday . The stock traded as high as $7.06 and last traded at $7.01. Approximately 90,222,000 shares traded hands during mid-day trading, an increase of 3% from the average daily volume of 87,660,383 shares. The stock had previously closed at $6.52.

Wall Street Analyst Weigh In

Separately, HC Wainwright reduced their price target on BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a research report on Tuesday, August 12th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $6.00.

BigBear.ai Price Performance

The company has a debt-to-equity ratio of 0.42, a current ratio of 1.91 and a quick ratio of 1.91. The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of -4.86 and a beta of 3.40. The stock has a fifty day simple moving average of $6.09 and a 200-day simple moving average of $4.84.

BigBear.ai (NYSE:BBAI - Get Free Report) last announced 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 firm had revenue of $32.47 million for the quarter, compared to the consensus estimate of $41.18 million. During the same period in the prior year, the firm posted ($0.06) earnings per share. The firm's quarterly revenue was down 18.3% compared to the same quarter last year. BigBear.ai has set its FY 2025 guidance at EPS. On average, equities research analysts anticipate that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

Insider Buying and Selling

In other news, CFO Sean Raymond Ricker sold 11,978 shares of the business's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $5.35, for a total value of $64,082.30. Following the completion of the sale, the chief financial officer directly owned 296,345 shares in the company, valued at $1,585,445.75. The trade was a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 1.10% of the company's stock.

Institutional Trading of BigBear.ai

Several institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors LLC raised its holdings in shares of BigBear.ai by 68.4% during the second quarter. Nisa Investment Advisors LLC now owns 6,222 shares of the company's stock valued at $42,000 after acquiring an additional 2,527 shares during the last quarter. Flaharty Asset Management LLC acquired a new stake in BigBear.ai during the 1st quarter worth $26,000. Allworth Financial LP grew its holdings in shares of BigBear.ai by 36.6% during the second quarter. Allworth Financial LP now owns 9,765 shares of the company's stock worth $66,000 after buying an additional 2,615 shares in the last quarter. Cornerstone Wealth Management LLC acquired a new stake in shares of BigBear.ai in the first quarter valued at about $29,000. Finally, City State Bank purchased a new position in shares of BigBear.ai in the first quarter worth about $29,000. Institutional investors and hedge funds own 7.55% of the company's stock.

About BigBear.ai

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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