BigBear.ai (NYSE:BBAI) Trading Down 10.1% - Should You Sell?

Key Points

• BigBear.ai's shares fell by 10.1% during mid-day trading, reaching a low of $7.65 before closing at $7.66.
• Despite the drop, Wall Street analysts have varied opinions, with two analysts rating it as a Buy, two as Hold, and one as Sell, while the average price target is set at $6.00.
• BigBear.ai reported a negative net margin of 269.28% for the last quarter, with revenues down by 18.3% year-over-year, signaling ongoing financial challenges for the company.

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) dropped 10.1% during mid-day trading on Thursday . The stock traded as low as $7.65 and last traded at $7.66. Approximately 94,772,651 shares were traded during trading, an increase of 5% from the average daily volume of 90,555,547 shares. The stock had previously closed at $8.52.

Wall Street Analysts Forecast Growth

BBAI has been the subject of several research analyst reports. 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of BigBear.ai in a research note 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $6.00.

BigBear.ai Price Performance

The firm has a market capitalization of $3.34 billion, a PE ratio of -5.32 and a beta of 3.43. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.91 and a current ratio of 1.91. The business's 50 day moving average is $6.25 and its two-hundred day moving average is $5.17.

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

Insider Activity at BigBear.ai

In other news, CFO Sean Raymond Ricker sold 11,978 shares of the business's stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 296,345 shares in the company, valued at $1,585,445.75. The trade was a 3.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Steward Partners Investment Advisory LLC grew its position in shares of BigBear.ai by 22.3% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 10,344 shares of the company's stock valued at $70,000 after purchasing an additional 1,885 shares in the last quarter. Toth Financial Advisory Corp grew its position in shares of BigBear.ai by 20.0% during the 3rd quarter. Toth Financial Advisory Corp now owns 12,000 shares of the company's stock valued at $78,000 after purchasing an additional 2,000 shares in the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of BigBear.ai by 11.1% during the 2nd quarter. Janney Montgomery Scott LLC now owns 23,320 shares of the company's stock worth $158,000 after acquiring an additional 2,325 shares during the last quarter. Nisa Investment Advisors LLC lifted its holdings in shares of BigBear.ai by 68.4% during the 2nd quarter. Nisa Investment Advisors LLC now owns 6,222 shares of the company's stock worth $42,000 after acquiring an additional 2,527 shares during the last quarter. Finally, Allworth Financial LP lifted its holdings in shares of BigBear.ai by 36.6% during the 2nd quarter. Allworth Financial LP now owns 9,765 shares of the company's stock worth $66,000 after acquiring an additional 2,615 shares during the last quarter. 7.55% of the stock is currently 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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