BigBear.ai (NYSE:BBAI) Shares Up 9.4% - Should You Buy?

Key Points

• BigBear.ai's shares surged by 9.4% during trading on Friday, reaching a last trade price of $6.87, up from a previous closing of $6.28.
• HC Wainwright has decreased their price target for BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating, amidst a general consensus of "Moderate Buy" from analysts.
• The company reported a net loss with earnings per share of ($0.06), beating estimates but falling short on revenue expectations for the last quarter, highlighting a year-over-year decline of 18.3% in revenue.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price traded up 9.4% during mid-day trading on Friday . The company traded as high as $6.94 and last traded at $6.87. 154,689,545 shares were traded during trading, an increase of 79% from the average session volume of 86,500,094 shares. The stock had previously closed at $6.28.

Wall Street Analysts Forecast Growth

Separately, HC Wainwright cut their target price on BigBear.ai from $9.00 to $8.00 and set a "buy" rating on the stock in a research note on Tuesday, August 12th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, BigBear.ai presently has a consensus rating of "Moderate Buy" and an average target price 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 business has a 50-day simple moving average of $6.14 and a two-hundred day simple moving average of $4.67.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its earnings results on Monday, August 11th. The company reported ($0.06) earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.01. The firm had revenue of $32.47 million during the quarter, compared to the consensus estimate of $41.18 million. BigBear.ai had a negative return on equity of 48.11% and a negative net margin of 269.28%.The firm's revenue for the quarter was down 18.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.06) earnings per share. BigBear.ai has set its FY 2025 guidance at EPS. On average, analysts predict that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current fiscal year.

Insider Activity at BigBear.ai

In other news, CFO Sean Raymond Ricker sold 11,978 shares of the stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $5.35, for a total transaction of $64,082.30. Following the completion of the sale, the chief financial officer owned 296,345 shares in the company, valued at approximately $1,585,445.75. This represents a 3.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On BigBear.ai

Institutional investors and hedge funds have recently modified their holdings of the stock. Flaharty Asset Management LLC acquired a new stake in shares of BigBear.ai during the 1st quarter valued at $26,000. Cornerstone Wealth Management LLC acquired a new stake in BigBear.ai during the 1st quarter valued at $29,000. City State Bank acquired a new stake in BigBear.ai during the 1st quarter valued at $29,000. Blue Bell Private Wealth Management LLC raised its stake in BigBear.ai by 2,216.0% during the 1st quarter. Blue Bell Private Wealth Management LLC now owns 11,580 shares of the company's stock valued at $33,000 after purchasing an additional 11,080 shares during the period. Finally, Opal Wealth Advisors LLC acquired a new stake in BigBear.ai during the 1st quarter valued at $34,000. Institutional investors and hedge funds own 7.55% of the company's stock.

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.