BigBear.ai (NYSE:BBAI) Trading Down 2% - Should You Sell?

Key Points

• BigBear.ai's stock dropped 2% to $4.78, with trading volume significantly down by 83% from its average.
• HC Wainwright lowered the price target for BigBear.ai from $9.00 to $8.00 while maintaining a "buy" rating, reflecting mixed analyst sentiment.
• BigBear.ai's recent quarterly earnings report showed a revenue decline of 18.3%, with earnings per share beating estimates but still indicating ongoing financial struggles.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) fell 2% on Tuesday . The company traded as low as $4.75 and last traded at $4.78. 14,244,886 shares changed hands during trading, a decline of 83% from the average session volume of 84,818,031 shares. The stock had previously closed at $4.87.

Analyst Upgrades and Downgrades

Separately, HC Wainwright decreased their target price 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 company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $6.00.

BigBear.ai Stock Down 1.7%

The stock's 50 day simple moving average is $6.47 and its two-hundred day simple moving average is $4.64. The firm has a market cap of $1.77 billion, a P/E ratio of -3.34 and a beta of 3.41. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.91 and a quick ratio of 1.91.

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

Insider Buying and Selling at BigBear.ai

In related news, CFO Sean Raymond Ricker sold 11,978 shares of the firm'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 completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On BigBear.ai

Several institutional investors and hedge funds have recently made changes to their positions in BBAI. Jump Financial LLC bought a new stake in shares of BigBear.ai during the second quarter valued at approximately $37,407,000. Geode Capital Management LLC increased its position in shares of BigBear.ai by 125.2% during 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 in the last quarter. JPMorgan Chase & Co. boosted its holdings in BigBear.ai by 3,252.7% in the second quarter. JPMorgan Chase & Co. now owns 2,398,419 shares of the company's stock worth $16,285,000 after purchasing an additional 2,326,883 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in BigBear.ai by 569.0% in the first quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock worth $6,694,000 after purchasing an additional 1,990,822 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in 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 worth $13,861,000 after purchasing an additional 1,584,783 shares during the last quarter. Institutional investors own 7.55% of the company's stock.

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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