C3.ai (NYSE:AI) Announces Quarterly Earnings Results

Key Points

• C3.ai beat quarterly expectations: The company reported an adjusted loss of $0.20 per share versus the consensus estimate of a $0.26 loss, while revenue of $52.38 million slightly exceeded estimates of $52.06 million. However, it remained deeply unprofitable, with a negative net margin of 187.95%.
• Analyst sentiment remains bearish: C3.ai has an average “Strong Sell” rating, with seven sell ratings, three holds and one buy; the average price target is $10.09.
• Shares and insider activity drew attention: The stock traded around $10.51, up modestly, while insiders sold 1.24 million shares worth approximately $13.1 million over the past 90 days, including substantial sales by the company’s CEOs.

C3.ai (NYSE:AI - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.20) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.06, FiscalAI reports. The business had revenue of $52.38 million for the quarter, compared to analyst estimates of $52.06 million. C3.ai had a negative net margin of 187.95% and a negative return on equity of 62.44%.

C3.ai Stock Performance

Shares of NYSE AI traded up $0.17 during mid-day trading on Wednesday, hitting $10.51. The stock had a trading volume of 7,580,177 shares, compared to its average volume of 6,059,272. The company has a 50 day moving average of $9.45 and a two-hundred day moving average of $9.43. C3.ai has a twelve month low of $7.68 and a twelve month high of $20.22. The firm has a market cap of $1.63 billion, a PE ratio of -3.15 and a beta of 2.10.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AI. Canaccord Genuity Group raised their price objective on C3.ai from $8.00 to $10.00 and gave the stock a "hold" rating in a research report on Thursday, June 4th. DA Davidson reaffirmed an "underperform" rating and set a $7.00 target price on shares of C3.ai in a research report on Tuesday. Citizens Jmp reiterated a "market perform" rating on shares of C3.ai in a research note on Thursday, June 4th. Morgan Stanley raised their price target on C3.ai from $6.00 to $7.00 and gave the stock an "underweight" rating in a report on Thursday, June 4th. Finally, Weiss Ratings upgraded C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Strong Sell" and an average price target of $10.09.

Insiders Place Their Bets

In other C3.ai news, CEO Stephen Bradley Ehikian sold 50,542 shares of C3.ai stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $9.45, for a total transaction of $477,621.90. Following the completion of the sale, the chief executive officer owned 651,130 shares of the company's stock, valued at approximately $6,153,178.50. The trade was a 7.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Thomas M. Siebel sold 453,314 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total value of $4,764,330.14. Following the sale, the chief executive officer owned 722,362 shares in the company, valued at approximately $7,592,024.62. The trade was a 38.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 1,241,760 shares of company stock valued at $13,084,895. 26.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On C3.ai

A number of large investors have recently bought and sold shares of AI. Invesco Ltd. raised its position in C3.ai by 29.5% during the 4th quarter. Invesco Ltd. now owns 452,653 shares of the company's stock worth $6,102,000 after buying an additional 103,058 shares during the last quarter. Axxcess Wealth Management LLC increased its stake in shares of C3.ai by 12.5% in the fourth quarter. Axxcess Wealth Management LLC now owns 45,000 shares of the company's stock worth $607,000 after acquiring an additional 5,000 shares during the period. VARCOV Co. acquired a new stake in shares of C3.ai in the fourth quarter worth $2,409,000. Voloridge Investment Management LLC purchased a new position in shares of C3.ai during the fourth quarter worth $9,183,000. Finally, Summit Securities Group LLC purchased a new position in shares of C3.ai during the fourth quarter worth $40,000. Hedge funds and other institutional investors own 38.96% of the company's stock.

C3.ai Company Profile

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.

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