BigBear.ai (NYSE:BBAI) Stock Price Down 26.4% Following Weak Earnings

Key Points

• BigBear.ai's stock price fell by 26.4% after the company reported quarterly earnings that significantly missed expectations, with an EPS of ($0.71) compared to the consensus estimate of ($0.07).
• The company's quarterly revenue of $32.47 million also fell short of analyst forecasts of $41.18 million, representing an 18.3% decline year-over-year.
• Following the disappointing results, HC Wainwright downgraded BigBear.ai's price target from $9.00 to $8.00 while maintaining a "buy" rating for the company.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) traded down 26.4% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $4.75 and last traded at $5.22. 107,225,695 shares were traded during trading, an increase of 21% from the average session volume of 88,318,773 shares. The stock had previously closed at $7.09.

The company reported ($0.71) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.64). The firm had revenue of $32.47 million during the quarter, compared to analyst estimates of $41.18 million. BigBear.ai had a negative return on equity of 57.83% and a negative net margin of 121.31%. The company's quarterly revenue was down 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.06) earnings per share.

Analyst Upgrades and Downgrades

Separately, HC Wainwright dropped their price objective on BigBear.ai from $9.00 to $8.00 and set a "buy" rating for the company in a research note on Tuesday.

Insider Activity

In related news, Director Dorothy D. Hayes sold 26,000 shares of the firm's stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $3.60, for a total value of $93,600.00. Following the completion of the sale, the director owned 255,239 shares in the company, valued at $918,860.40. This trade represents a 9.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Julie Peffer sold 50,000 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $4.40, for a total transaction of $220,000.00. Following the completion of the sale, the chief financial officer owned 634,153 shares of the company's stock, valued at approximately $2,790,273.20. The trade was a 7.31% decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of BigBear.ai

A number of hedge funds have recently bought and sold shares of the company. AE Industrial Partners LP acquired a new position in shares of BigBear.ai in the 4th quarter valued at $284,721,000. Geode Capital Management LLC lifted its holdings in shares of 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 acquiring an additional 2,820,698 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of 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 acquiring an additional 2,326,883 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of BigBear.ai by 569.0% during 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 in the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new position in shares of BigBear.ai during the 1st quarter valued at $3,811,000. Institutional investors and hedge funds own 7.55% of the company's stock.

BigBear.ai Price Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.66 and a current ratio of 1.66. The firm has a market cap of $1.52 billion, a price-to-earnings ratio of -6.67 and a beta of 3.44. The company's fifty day moving average is $6.06 and its two-hundred day moving average is $4.84.

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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