BigBear.ai (NYSE:BBAI) Stock Price Down 3.8% - Here's Why

Key Points

• BigBear.ai stock dropped 3.8% to $7.41, with trading volume increasing to 126.87 million shares, significantly above its average session volume.
• Analysts have diverse views on BigBear.ai, with a consensus rating of "Hold" and an average target price of $6.00, while brokerages like HC Wainwright have reduced their target price from $9.00 to $8.00.
• In its recent earnings report, BigBear.ai reported a negative earnings per share of ($0.06), though it beat analyst expectations, but revenue fell by 18.3% year-over-year.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) fell 3.8% on Friday . The company traded as low as $7.10 and last traded at $7.41. 126,865,679 shares changed hands during mid-day trading, an increase of 40% from the average session volume of 90,744,859 shares. The stock had previously closed at $7.70.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on BBAI. HC Wainwright reduced their target price on shares of BigBear.ai from $9.00 to $8.00 and set a "buy" rating for the company in a research note on Tuesday, August 12th. Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a research note on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $6.00.

BigBear.ai Stock Performance

The company has a market capitalization of $3.23 billion, a price-to-earnings ratio of -5.14 and a beta of 3.43. The stock's 50 day moving average price is $6.27 and its 200 day moving average price is $5.21. The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.42.

BigBear.ai (NYSE:BBAI - Get Free Report) last issued its earnings results on Monday, August 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $32.47 million during the quarter, compared to the consensus estimate of $41.18 million. During the same period last year, the business posted ($0.06) EPS. BigBear.ai's revenue was down 18.3% on a year-over-year basis. BigBear.ai has set its FY 2025 guidance at EPS. Analysts expect that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Transactions at BigBear.ai

In related news, CFO Sean Raymond Ricker sold 11,978 shares of the firm's 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 completion of the sale, the chief financial officer directly owned 296,345 shares in the company, valued at approximately $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 accessible through the SEC website. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On BigBear.ai

Several hedge funds have recently bought and sold shares of the company. Parisi Gray Wealth Management acquired a new stake in BigBear.ai in the 3rd quarter valued at about $144,000. Sowell Financial Services LLC bought a new position in BigBear.ai in the 3rd quarter valued at about $126,000. CWM LLC raised its holdings in BigBear.ai by 237.5% in the 3rd quarter. CWM LLC now owns 4,640 shares of the company's stock valued at $30,000 after acquiring an additional 3,265 shares during the period. Farther Finance Advisors LLC raised its holdings in BigBear.ai by 187.9% in the 3rd quarter. Farther Finance Advisors LLC now owns 29,342 shares of the company's stock valued at $191,000 after acquiring an additional 19,152 shares during the period. Finally, Toth Financial Advisory Corp raised its holdings in BigBear.ai by 20.0% in the 3rd quarter. Toth Financial Advisory Corp now owns 12,000 shares of the company's stock valued at $78,000 after acquiring an additional 2,000 shares during the period. 7.55% of the stock is currently owned by institutional investors and hedge funds.

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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