BigBear.ai (NYSE:BBAI) Stock Price Up 4.1% - Should You Buy?

Key Points

• Shares of BigBear.ai jumped 4.1% on Thursday, trading as high as $4.03 (last $3.9750) on about 37.85 million shares, roughly 24% below its average session volume.
• Analysts are mixed after recent cuts to price targets—HC Wainwright trimmed its target to $6 and Cantor Fitzgerald to $5 while Weiss Ratings and Wall Street Zen issued sell calls—leaving a consensus rating of Hold and a $5.50 target.
• The company reported an EPS beat ($0.01 vs. -$0.05 est.) but revenue plunged 37.7% to $27.3M and margins/ROE remain negative; BigBear.ai has a $1.9B market cap, high beta (3.47), and an insider recently sold 80,000 shares.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares shot up 4.1% on Thursday . The company traded as high as $4.03 and last traded at $3.9750. 37,852,305 shares were traded during mid-day trading, a decline of 24% from the average session volume of 49,818,039 shares. The stock had previously closed at $3.82.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on BBAI. HC Wainwright dropped their price target on BigBear.ai from $8.00 to $6.00 and set a "buy" rating on the stock in a research note on Tuesday, March 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of BigBear.ai in a research report on Monday, April 20th. Wall Street Zen cut shares of BigBear.ai from a "hold" rating to a "sell" rating in a research note on Saturday, January 10th. Finally, Cantor Fitzgerald decreased their price target on shares of BigBear.ai from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, BigBear.ai has a consensus rating of "Hold" and a consensus target price of $5.50.

BigBear.ai Price Performance

The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 0.16. The company's 50 day moving average is $3.75 and its 200 day moving average is $5.22. The firm has a market capitalization of $1.90 billion, a price-to-earnings ratio of -3.98 and a beta of 3.47.

BigBear.ai (NYSE:BBAI - Get Free Report) last released its earnings results on Monday, March 2nd. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.04. The company had revenue of $27.30 million for the quarter, compared to analyst estimates of $33.31 million. BigBear.ai had a negative return on equity of 18.22% and a negative net margin of 230.21%.BigBear.ai's quarterly revenue was down 37.7% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.43) EPS. On average, equities research analysts anticipate that BigBear.ai Holdings, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Pamela Joyce Braden sold 80,000 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $4.00, for a total transaction of $320,000.00. Following the sale, the director directly owned 508,687 shares of the company's stock, valued at approximately $2,034,748. This represents a 13.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.54% of the company's stock.

Institutional Trading of BigBear.ai

Several large investors have recently made changes to their positions in the company. Kestra Advisory Services LLC raised its position in BigBear.ai by 29.2% during the first quarter. Kestra Advisory Services LLC now owns 18,424 shares of the company's stock valued at $65,000 after purchasing an additional 4,159 shares in the last quarter. GM Advisory Group LLC boosted its holdings in shares of BigBear.ai by 33.3% in the 1st quarter. GM Advisory Group LLC now owns 400,000 shares of the company's stock valued at $1,408,000 after purchasing an additional 100,000 shares in the last quarter. PFG Investments LLC boosted its holdings in shares of BigBear.ai by 2.7% in the 1st quarter. PFG Investments LLC now owns 347,920 shares of the company's stock valued at $1,225,000 after purchasing an additional 9,220 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of BigBear.ai in the 1st quarter valued at $70,000. Finally, Deltec Asset Management LLC acquired a new position in shares of BigBear.ai during the 1st quarter worth $326,000. Institutional investors and hedge funds own 7.55% of the company's stock.

BigBear.ai Company Profile

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.

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