C3.ai (NYSE:AI) Stock Price Down 23.2% - Time to Sell?

Key Points

• C3.ai's stock has seen a significant decline of 23.2%, trading as low as $14.70 and closing at $17.00 amidst a surge in trading volume.
• Analysts have mixed ratings on the stock, with a consensus target price of $29.43 while some analysts have set price targets as high as $50.00 and as low as $13.00.
• Insider activity has increased, with C3.ai executives selling nearly 2.3 million shares, indicating a potential lack of confidence in the stock's future performance.

C3.ai, Inc. (NYSE:AI - Get Free Report) shares traded down 23.2% on Monday . The stock traded as low as $14.70 and last traded at $17.00. 39,673,182 shares changed hands during mid-day trading, an increase of 612% from the average session volume of 5,574,866 shares. The stock had previously closed at $22.13.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Wall Street Zen raised shares of C3.ai from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Westpark Capital upgraded shares of C3.ai to a "strong-buy" rating and set a $40.00 target price on the stock in a research note on Wednesday, July 9th. UBS Group dropped their target price on shares of C3.ai from $28.00 to $27.00 and set a "neutral" rating on the stock in a research note on Thursday, June 26th. JMP Securities reiterated a "market outperform" rating and issued a $50.00 target price on shares of C3.ai in a research note on Friday, July 25th. Finally, DA Davidson reiterated an "underperform" rating and issued a $13.00 target price (down from $25.00) on shares of C3.ai in a research note on Monday. Five research analysts have rated the stock with a sell rating, six have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $29.43.

C3.ai Stock Performance

The company has a market capitalization of $2.21 billion, a PE ratio of -7.35 and a beta of 1.98. The business's 50-day moving average is $25.26 and its 200-day moving average is $24.72.

C3.ai (NYSE:AI - Get Free Report) last released its quarterly earnings data on Wednesday, May 28th. The company reported ($0.16) earnings per share for the quarter, beating the consensus estimate of ($0.20) by $0.04. C3.ai had a negative net margin of 74.21% and a negative return on equity of 33.51%. The firm had revenue of $108.72 million during the quarter, compared to analysts' expectations of $107.85 million. During the same period in the previous year, the company earned ($0.11) earnings per share. The firm's quarterly revenue was up 25.5% on a year-over-year basis. Analysts expect that C3.ai, Inc. will post -2.44 EPS for the current year.

Insider Activity at C3.ai

In other news, CFO Hitesh Lath sold 17,689 shares of the company's stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $24.96, for a total value of $441,517.44. Following the transaction, the chief financial officer directly owned 166,218 shares in the company, valued at approximately $4,148,801.28. This represents a 9.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Merel Witteveen sold 5,485 shares of the company's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $23.95, for a total transaction of $131,365.75. Following the completion of the transaction, the vice president owned 13,740 shares in the company, valued at approximately $329,073. The trade was a 28.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 2,298,892 shares of company stock valued at $58,428,808 over the last quarter. 33.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bulltick Wealth Management LLC bought a new stake in shares of C3.ai in the 2nd quarter valued at about $393,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in C3.ai by 40.1% in the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 27,477 shares of the company's stock worth $675,000 after purchasing an additional 7,867 shares in the last quarter. Rockefeller Capital Management L.P. boosted its stake in C3.ai by 8.6% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 36,923 shares of the company's stock worth $907,000 after purchasing an additional 2,917 shares in the last quarter. Cetera Investment Advisers boosted its stake in C3.ai by 21.5% in the 2nd quarter. Cetera Investment Advisers now owns 80,565 shares of the company's stock worth $1,979,000 after purchasing an additional 14,250 shares in the last quarter. Finally, Creative Planning boosted its stake in C3.ai by 16.2% in the 2nd quarter. Creative Planning now owns 85,359 shares of the company's stock worth $2,097,000 after purchasing an additional 11,894 shares in the last quarter. 38.96% of the stock is currently owned by institutional investors.

C3.ai Company Profile

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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