BigBear.ai (NYSE:BBAI) Shares Up 1.8% - Should You Buy?

Key Points

• BigBear.ai's stock rose by 1.8%, trading at $4.89, with a significant decline in trading volume at 15,847,991 shares.
• HC Wainwright downgraded the company's price target from $9.00 to $8.00 while maintaining a "buy" rating, with the stock currently holding an average rating of "Moderate Buy" and a target price of $6.00.
• BigBear.ai reported negative earnings per share (EPS) of ($0.06) during the last quarter, beating expectations, but its revenue of $32.47 million fell short of analysts' forecasts.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) shares shot up 1.8% on Wednesday . The stock traded as high as $4.92 and last traded at $4.89. 15,847,991 shares traded hands during trading, a decline of 81% from the average session volume of 84,554,039 shares. The stock had previously closed at $4.80.

Analyst Upgrades and Downgrades

Separately, HC Wainwright decreased their price target 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. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $6.00.

BigBear.ai Price Performance

The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.42. The company has a market cap of $1.89 billion, a PE ratio of -3.53 and a beta of 3.40. The firm has a 50 day moving average of $6.26 and a two-hundred day moving average of $4.63.

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

Insider Transactions at BigBear.ai

In other BigBear.ai news, CFO Sean Raymond Ricker sold 11,978 shares of the stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $5.35, for a total transaction of $64,082.30. Following 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 this hyperlink. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On BigBear.ai

Institutional investors and hedge funds have recently made changes to their positions in the business. Baird Financial Group Inc. purchased a new stake in BigBear.ai during the first quarter valued at approximately $286,000. Price T Rowe Associates Inc. MD raised its holdings in BigBear.ai by 21.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 39,966 shares of the company's stock worth $178,000 after purchasing an additional 7,177 shares during the period. Ameriprise Financial Inc. bought a new stake in BigBear.ai during the fourth quarter valued at about $81,000. ProShare Advisors LLC increased its position in BigBear.ai by 51.5% in the fourth quarter. ProShare Advisors LLC now owns 29,077 shares of the company's stock worth $129,000 after buying an additional 9,879 shares in the last quarter. Finally, Swiss National Bank bought a new position in shares of BigBear.ai in the first quarter worth about $1,045,000. Hedge funds and other 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.