C3.ai (NYSE:AI) Shares Down 3.6% - Here's Why

Key Points

• C3.ai shares fell 3.6% to $17.55 during mid-day trading, marking a significant drop from its previous close of $18.20.
• Analysts have mixed opinions on C3.ai, with ratings ranging from strong buy to sell, leading to an average price target of $27.43.
• Despite a revenue increase of 25.5% year-over-year, C3.ai reported a negative net margin of 74.21% and a negative return on equity of 33.51% in its most recent earnings report.

C3.ai, Inc. (NYSE:AI - Get Free Report) shares dropped 3.6% during mid-day trading on Tuesday . The stock traded as low as $17.65 and last traded at $17.55. Approximately 2,440,711 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 6,033,608 shares. The stock had previously closed at $18.20.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on AI shares. Westpark Capital raised C3.ai to a "strong-buy" rating and set a $40.00 target price for the company in a research note on Wednesday, July 9th. Northland Capmk downgraded C3.ai from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 11th. Piper Sandler cut their price objective on shares of C3.ai from $28.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday, May 29th. Wall Street Zen cut shares of C3.ai from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Oppenheimer reissued a "market perform" rating on shares of C3.ai in a report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $27.43.

C3.ai Stock Performance

The business's 50-day moving average is $24.31 and its 200-day moving average is $24.12. The firm has a market cap of $2.33 billion, a price-to-earnings ratio of -7.74 and a beta of 1.98.

C3.ai (NYSE:AI - Get Free Report) last announced its quarterly earnings data on Wednesday, May 28th. The company reported ($0.16) EPS for the quarter, topping analysts' consensus estimates of ($0.20) by $0.04. The business had revenue of $108.72 million for the quarter, compared to analyst estimates of $107.85 million. C3.ai had a negative net margin of 74.21% and a negative return on equity of 33.51%. The firm's revenue for the quarter was up 25.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.11) earnings per share. C3.ai has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. Equities research analysts expect that C3.ai, Inc. will post -2.44 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Stephen M. Ward, Jr. sold 42,382 shares of the business's stock in a transaction that occurred on Thursday, May 29th. The stock was sold at an average price of $26.32, for a total transaction of $1,115,494.24. Following the transaction, the director directly owned 546,495 shares of the company's stock, valued at approximately $14,383,748.40. The trade was a 7.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John E. Hyten sold 10,000 shares of the company's stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $23.75, for a total value of $237,500.00. Following the completion of the sale, the director owned 63,942 shares of the company's stock, valued at approximately $1,518,622.50. The trade was a 13.52% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,257,074 shares of company stock worth $53,260,950. 33.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On C3.ai

Institutional investors have recently added to or reduced their stakes in the stock. Headlands Technologies LLC acquired a new position in C3.ai in the 2nd quarter valued at $256,000. Tower Research Capital LLC TRC grew its position in C3.ai by 601.2% during the second quarter. Tower Research Capital LLC TRC now owns 21,794 shares of the company's stock worth $535,000 after buying an additional 18,686 shares in the last quarter. Holocene Advisors LP grew its stake in C3.ai by 84.4% during the second quarter. Holocene Advisors LP now owns 110,877 shares of the company's stock worth $2,724,000 after buying an additional 50,758 shares during the last quarter. Boothbay Fund Management LLC acquired a new position in C3.ai in the second quarter valued at approximately $239,000. Finally, Brevan Howard Capital Management LP acquired a new stake in shares of C3.ai during the second quarter worth $601,000. Institutional investors and hedge funds own 38.96% of the company's stock.

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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