C3.ai (NYSE:AI) Price Target Cut to $11.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley has reduced its price target for C3.ai from $22.00 to $11.00, indicating a potential downside of 30.04% from the stock's previous close.
• In addition to the downgrade, C3.ai reported a loss of ($0.86) EPS for the last quarter, falling significantly short of the expected ($0.21) EPS with revenues down 19.4% year-over-year.
• The overall consensus rating for C3.ai among analysts is "Reduce," with a consensus target price still at $22.00, despite the latest downgrades.

C3.ai (NYSE:AI - Get Free Report) had its target price cut by stock analysts at Morgan Stanley from $22.00 to $11.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has an "underweight" rating on the stock. Morgan Stanley's target price suggests a potential downside of 30.04% from the stock's previous close.

Several other research analysts have also recently commented on the stock. Oppenheimer restated a "market perform" rating on shares of C3.ai in a report on Tuesday, August 12th. UBS Group reduced their price objective on shares of C3.ai from $23.00 to $16.00 and set a "neutral" rating for the company in a research note on Thursday. Northland Capmk cut C3.ai from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Wall Street Zen lowered C3.ai from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Finally, DA Davidson reissued an "underperform" rating and set a $13.00 price target (down from $25.00) on shares of C3.ai in a research report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $22.00.

C3.ai Trading Up 0.7%

AI opened at $15.72 on Tuesday. The stock has a market capitalization of $2.11 billion, a P/E ratio of -6.05 and a beta of 1.96. C3.ai has a 12 month low of $14.70 and a 12 month high of $45.08. The firm's fifty day simple moving average is $22.06 and its 200 day simple moving average is $22.49.

C3.ai (NYSE:AI - Get Free Report) last released its earnings results on Wednesday, September 3rd. The company reported ($0.86) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.65). The firm had revenue of $70.26 million for the quarter, compared to the consensus estimate of $104.02 million. C3.ai had a negative return on equity of 40.06% and a negative net margin of 92.08%.C3.ai's revenue for the quarter was down 19.4% on a year-over-year basis. During the same quarter last year, the company posted ($0.05) EPS. C3.ai has set its Q2 2026 guidance at EPS. On average, equities research analysts predict that C3.ai will post -2.44 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Merel Witteveen sold 5,485 shares of the stock in a transaction on Monday, June 16th. The stock was sold at an average price of $23.95, for a total value of $131,365.75. Following the sale, the vice president owned 13,740 shares in the company, valued at approximately $329,073. This represents a 28.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Hitesh Lath sold 17,689 shares of the firm's stock in a transaction on Friday, June 27th. The shares were sold at an average price of $24.96, for a total value of $441,517.44. Following the sale, the chief financial officer directly owned 166,218 shares of the company's stock, valued at $4,148,801.28. This represents a 9.62% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 2,161,058 shares of company stock valued at $50,480,751 over the last 90 days. 26.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Mercer Global Advisors Inc. ADV bought a new stake in shares of C3.ai during the fourth quarter worth approximately $587,000. Ameriprise Financial Inc. lifted its holdings in C3.ai by 26.5% during the 4th quarter. Ameriprise Financial Inc. now owns 59,645 shares of the company's stock worth $2,054,000 after purchasing an additional 12,504 shares during the last quarter. Cresset Asset Management LLC lifted its holdings in shares of C3.ai by 49.5% during the fourth quarter. Cresset Asset Management LLC now owns 23,582 shares of the company's stock worth $812,000 after buying an additional 7,806 shares in the last quarter. Deutsche Bank AG boosted its position in shares of C3.ai by 42.2% in the fourth quarter. Deutsche Bank AG now owns 167,531 shares of the company's stock valued at $5,768,000 after acquiring an additional 49,690 shares during the period. Finally, Focus Partners Wealth grew its stake in shares of C3.ai by 14.3% in the fourth quarter. Focus Partners Wealth now owns 57,501 shares of the company's stock valued at $1,982,000 after acquiring an additional 7,193 shares in the last quarter. 38.96% of the stock is owned by institutional investors.

About C3.ai

C3.ai, Inc operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information.

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