BigBear.ai (NYSE:BBAI) Shares Down 5.9% - Should You Sell?

Key Points

• BigBear.ai shares fell by 5.9%, closing at $5.51 after trading as low as $5.55, alongside a significant decrease in trading volume.
• Analysts from HC Wainwright lowered their price target for BigBear.ai from $9.00 to $8.00, while maintaining a "buy" rating, contributing to a "Moderate Buy" consensus rating for the stock.
• BigBear.ai reported a negative net margin of 269.28% and quarterly revenue of $32.47 million, down 18.3% year-over-year, despite beating EPS estimates.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares dropped 5.9% during mid-day trading on Tuesday . The company traded as low as $5.55 and last traded at $5.51. Approximately 23,402,189 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 88,323,859 shares. The stock had previously closed at $5.85.

Analyst Upgrades and Downgrades

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

BigBear.ai Price Performance

The company has a market capitalization of $2.03 billion, a price-to-earnings ratio of -3.80 and a beta of 3.44. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.42. The stock's 50-day moving average price is $6.41 and its 200-day moving average price is $4.94.

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

Insider Transactions at BigBear.ai

In other BigBear.ai news, CFO Julie Peffer sold 50,000 shares of the firm's stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $4.40, for a total transaction of $220,000.00. Following the transaction, the chief financial officer owned 634,153 shares in the company, valued at approximately $2,790,273.20. This trade represents a 7.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On BigBear.ai

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Flaharty Asset Management LLC bought a new stake in shares of BigBear.ai in the first quarter worth about $26,000. City State Bank bought a new position in shares of BigBear.ai in the 1st quarter valued at about $29,000. Cornerstone Wealth Management LLC bought a new position in shares of BigBear.ai in the 1st quarter valued at about $29,000. Blue Bell Private Wealth Management LLC grew its holdings in shares of BigBear.ai by 2,216.0% in the 1st quarter. Blue Bell Private Wealth Management LLC now owns 11,580 shares of the company's stock valued at $33,000 after acquiring an additional 11,080 shares in the last quarter. Finally, Opal Wealth Advisors LLC bought a new stake in shares of BigBear.ai in the 1st quarter valued at about $34,000. Institutional investors 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.