BigBear.ai (NYSE:BBAI) Trading 21.8% Higher - Still a Buy?

Key Points

• Shares of BigBear.ai rose 21.8% during trading, with a last traded price of $8.80, significantly increasing the trading volume by 133%.
• HC Wainwright lowered their target price for BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating; the average consensus rating for the stock is currently "hold" with a target price of $6.00.
• The company reported a net loss of $0.06 EPS, slightly surpassing estimates, but revenue decreased by 18.3% year-over-year, indicating ongoing financial challenges.

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) rose 21.8% during trading on Monday . The company traded as high as $9.20 and last traded at $8.80. Approximately 209,488,280 shares changed hands during mid-day trading, an increase of 133% from the average daily volume of 89,867,695 shares. The stock had previously closed at $7.22.

Analysts Set New Price Targets

BBAI has been the subject of a number of recent research reports. HC Wainwright dropped their target price on BigBear.ai from $9.00 to $8.00 and set a "buy" rating for the company in a report on Tuesday, August 12th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of BigBear.ai in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $6.00.

BigBear.ai Trading Up 21.8%

The company has a fifty day simple moving average of $6.14 and a two-hundred day simple moving average of $5.08. 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 has a market capitalization of $3.83 billion, a P/E ratio of -6.11 and a beta of 3.43.

BigBear.ai (NYSE:BBAI - Get Free Report) last posted its earnings results 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 for the quarter, compared to analyst estimates 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 revenue for the quarter was down 18.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.06) earnings per share. BigBear.ai has set its FY 2025 guidance at EPS. On average, sell-side analysts expect that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Activity

In other BigBear.ai news, CFO Sean Raymond Ricker sold 11,978 shares of BigBear.ai stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $5.35, for a total value of $64,082.30. Following the sale, the chief financial officer owned 296,345 shares of the company's stock, valued at $1,585,445.75. This trade represents a 3.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of BigBear.ai

A number of hedge funds and other institutional investors have recently modified their holdings of BBAI. Jump Financial LLC acquired a new stake in shares of BigBear.ai in the second quarter valued at about $37,407,000. Geode Capital Management LLC increased its position in shares of BigBear.ai by 125.2% in the second quarter. Geode Capital Management LLC now owns 5,074,311 shares of the company's stock valued at $34,456,000 after acquiring an additional 2,820,698 shares during the last quarter. JPMorgan Chase & Co. increased its position in shares of BigBear.ai by 3,252.7% in the second quarter. JPMorgan Chase & Co. now owns 2,398,419 shares of the company's stock valued at $16,285,000 after acquiring an additional 2,326,883 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of BigBear.ai by 569.0% in the first quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock valued at $6,694,000 after acquiring an additional 1,990,822 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of BigBear.ai by 347.0% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,041,444 shares of the company's stock valued at $13,861,000 after acquiring an additional 1,584,783 shares during the last quarter. Institutional investors and hedge funds 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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