BigBear.ai (NYSE:BBAI) Trading Down 6.8% - Should You Sell?

Key Points

• BigBear.ai's stock dropped by 6.8% to a trading price of $6.60 amid a trading volume that exceeded the average by 61%.
• Analysts have mixed opinions with a consensus rating of "Hold" and a revised price target of $6.00, following a target price decrease by HC Wainwright.
• BigBear.ai reported a quarterly loss and revenue of $32.47 million, falling short of analysts' expectations, with a negative net margin of 269.28%.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price dropped 6.8% during mid-day trading on Wednesday . The stock traded as low as $6.40 and last traded at $6.60. Approximately 147,633,449 shares were traded during mid-day trading, an increase of 61% from the average daily volume of 91,576,961 shares. The stock had previously closed at $7.08.

Analyst Upgrades and Downgrades

BBAI has been the subject of several recent analyst reports. 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 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 given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, BigBear.ai presently has a consensus rating of "Hold" and a consensus price target of $6.00.

BigBear.ai Price Performance

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 firm's fifty day moving average price is $6.30 and its two-hundred day moving average price is $5.31. The stock has a market capitalization of $2.88 billion, a PE ratio of -4.58 and a beta of 3.43.

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 the consensus estimate of ($0.07) by $0.01. The firm had revenue of $32.47 million during the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same period in the previous year, the company earned ($0.06) earnings per share. BigBear.ai has set its FY 2025 guidance at EPS. On average, equities analysts predict that BigBear.ai Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Transactions at BigBear.ai

In related news, CFO Sean Raymond Ricker sold 11,978 shares of the business'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 directly owned 296,345 shares in the company, valued at approximately $1,585,445.75. The trade was a 3.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 1.10% of the company's stock.

Institutional Trading of BigBear.ai

Large investors have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. grew its position in BigBear.ai by 569.0% during the first quarter. Goldman Sachs Group Inc. now owns 2,340,713 shares of the company's stock valued at $6,694,000 after buying an additional 1,990,822 shares during the period. Baird Financial Group Inc. bought a new stake in BigBear.ai during the first quarter valued at approximately $286,000. McGuire Investment Group LLC boosted its position in shares of BigBear.ai by 89.0% in the second quarter. McGuire Investment Group LLC now owns 86,658 shares of the company's stock worth $588,000 after purchasing an additional 40,806 shares during the period. Kingswood Wealth Advisors LLC boosted its position in shares of BigBear.ai by 48.5% in the second quarter. Kingswood Wealth Advisors LLC now owns 125,136 shares of the company's stock worth $850,000 after purchasing an additional 40,893 shares during the period. Finally, Swiss National Bank bought a new position in shares of BigBear.ai in the first quarter worth approximately $1,045,000. 7.55% of the stock is currently owned by institutional investors.

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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