BigBear.ai (NYSE:BBAI) Stock Price Down 7% - Should You Sell?

Key Points

• Shares fell about 7% to $6.67 on Thursday with mid-day volume of 13.8 million shares, well below the reported average session volume, reflecting short-term selling pressure.
• Analysts are mixed—two Buys, two Holds and one Sell—giving an overall consensus rating of Hold with an average price target of $6.33.
• BigBear.ai slightly missed EPS (reported -$0.07 vs. -$0.06 expected) while beating revenue ($33.14M) that was nonetheless down 20.1% year-over-year, and the company remains unprofitable with a negative net margin and ROE.

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) fell 7% on Thursday . The stock traded as low as $6.60 and last traded at $6.67. 13,824,281 shares were traded during mid-day trading, a decline of 85% from the average session volume of 95,007,008 shares. The stock had previously closed at $7.17.

Analyst Upgrades and Downgrades

BBAI has been the subject of several research analyst reports. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $7.00 target price on shares of BigBear.ai in a research note on Tuesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of BigBear.ai in a report on Wednesday, October 8th. Finally, HC Wainwright reissued a "buy" rating and set a $8.00 price target on shares of BigBear.ai in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $6.33.

BigBear.ai Stock Performance

The business has a 50-day moving average of $6.63 and a 200-day moving average of $5.74. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.13 and a quick ratio of 1.91. The company has a market capitalization of $2.74 billion, a P/E ratio of -4.43 and a beta of 3.42.

BigBear.ai (NYSE:BBAI - Get Free Report) last issued its quarterly earnings data on Monday, November 10th. The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.01). The company had revenue of $33.14 million for 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 company's revenue for the quarter was down 20.1% compared to the same quarter last year. During the same quarter last year, the company earned ($0.05) earnings per share. BigBear.ai has set its FY 2025 guidance at EPS. On average, sell-side analysts anticipate that BigBear.ai Holdings, Inc. will post -0.28 EPS for the current year.

Insider Activity

In other BigBear.ai news, CFO Sean Raymond Ricker sold 11,978 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $5.35, for a total transaction of $64,082.30. Following the transaction, 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 document filed with the SEC, which can be accessed through the SEC website. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On BigBear.ai

Hedge funds have recently added to or reduced their stakes in the business. Flaharty Asset Management LLC acquired a new stake in BigBear.ai during the 1st quarter worth about $26,000. CWM LLC boosted its stake in shares of BigBear.ai by 237.5% in the third quarter. CWM LLC now owns 4,640 shares of the company's stock worth $30,000 after buying an additional 3,265 shares during the last quarter. Hazlett Burt & Watson Inc. grew its holdings in BigBear.ai by 3,355.6% during the third quarter. Hazlett Burt & Watson Inc. now owns 4,976 shares of the company's stock worth $32,000 after acquiring an additional 4,832 shares during the period. Blue Bell Private Wealth Management LLC raised its position in BigBear.ai by 2,216.0% during the first 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, Alpine Global Management LLC acquired a new position in BigBear.ai in the first quarter valued at approximately $34,000. 7.55% of the stock is owned by hedge funds and other institutional investors.

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.

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