BigBear.ai (NYSE:BBAI) Stock Price Down 6.3% - Should You Sell?

Key Points

• Shares fell 6.3% to about $5.98 on heavy volume (127.3M shares), trading near the consensus price target of $6.33 while analysts remain mixed with an average "Hold" rating (2 Buy, 2 Hold, 1 Sell).
• Q3 results showed weakness: EPS of ($0.07) missed by $0.01 while revenue of $33.14M beat estimates but was down 20.1% year‑over‑year, and the company has deeply negative margins with analysts forecasting ~($0.28) EPS for the year.
• Institutional buying contrasts with insider sales: Vanguard and other funds materially increased stakes (Vanguard up 32.6% to 27.6M shares) even as a director and the CFO sold small positions; institutional ownership stands at 7.55% and insiders at 0.54%.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price fell 6.3% on Monday . The stock traded as low as $5.78 and last traded at $5.9750. 127,339,494 shares changed hands during mid-day trading, an increase of 33% from the average session volume of 95,861,469 shares. The stock had previously closed at $6.38.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on BBAI shares. Wall Street Zen upgraded BigBear.ai from a "strong sell" rating to a "hold" rating in a research report on Saturday, November 15th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $7.00 price target on shares of BigBear.ai in a report on Tuesday, November 11th. HC Wainwright reiterated a "buy" rating and set a $8.00 price target on shares of BigBear.ai in a research report on Tuesday, November 11th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of BigBear.ai in a report on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $6.33.

BigBear.ai Price Performance

The stock has a market capitalization of $2.61 billion, a P/E ratio of -4.21 and a beta of 3.44. The company has a debt-to-equity ratio of 0.18, a quick ratio of 3.13 and a current ratio of 3.13. The firm has a 50-day moving average price of $6.65 and a 200 day moving average price of $6.17.

BigBear.ai (NYSE:BBAI - Get Free Report) last issued its earnings results on Monday, November 10th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.01). The firm had revenue of $33.14 million during the quarter, compared to analysts' expectations of $31.82 million. BigBear.ai had a negative return on equity of 26.11% and a negative net margin of 274.70%.The firm's quarterly revenue was down 20.1% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.05) EPS. On average, analysts expect that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

Insider Activity

In other news, Director Dorothy D. Hayes sold 22,000 shares of the business's stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $6.08, for a total value of $133,760.00. Following the completion of the sale, the director owned 236,150 shares of the company's stock, valued at approximately $1,435,792. The trade was a 8.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Sean Raymond Ricker sold 5,000 shares of the stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $7.06, for a total value of $35,300.00. Following the sale, the chief financial officer owned 488,716 shares of the company's stock, valued at $3,450,334.96. This represents a 1.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.54% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in BigBear.ai by 32.6% in the 3rd quarter. Vanguard Group Inc. now owns 27,604,836 shares of the company's stock worth $179,984,000 after acquiring an additional 6,790,890 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of BigBear.ai during the second quarter worth about $37,407,000. Two Sigma Investments LP grew its stake in shares of BigBear.ai by 165.5% in the third quarter. Two Sigma Investments LP now owns 4,903,920 shares of the company's stock worth $31,974,000 after purchasing an additional 3,056,597 shares during the last quarter. Geode Capital Management LLC increased its holdings in 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 purchasing an additional 2,820,698 shares during the period. Finally, JPMorgan Chase & Co. raised its position in 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 purchasing an additional 2,326,883 shares during the last quarter. Institutional investors 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.

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