Analysts Set Expectations for C3.ai's Q4 Earnings (NYSE:AI)

Key Points

• Northland Securities expects C3.ai to report a Q4 loss of $0.42 per share and maintains an “Outperform” rating with a $16 price target. The broader analyst consensus is considerably more cautious, with a “Reduce” rating and a $9.36 consensus target.
• C3.ai’s latest quarterly results exceeded expectations, with a loss of $0.20 per share versus the $0.26 consensus loss and revenue of $52.38 million. However, revenue declined 25.4% year over year, while the company continued to post substantial negative margins.
• The stock opened at $11.58, above its 50-day and 200-day moving averages, but insiders sold more than 1.1 million shares worth $11.7 million over the past three months. Institutional investors and hedge funds own approximately 39% of the company.

C3.ai, Inc. (NYSE:AI - Free Report) - Stock analysts at Northland Securities issued their Q4 2028 EPS estimates for C3.ai in a research report issued on Monday, October 12th. Northland Securities analyst M. Latimore forecasts that the company will post earnings per share of ($0.42) for the quarter. Northland Securities currently has an "Outperform" rating and a $16.00 price target on the stock. The consensus estimate for C3.ai's current full-year earnings is ($2.21) per share.

AI has been the topic of a number of other reports. Wall Street Zen raised shares of C3.ai from a "sell" rating to a "hold" rating in a report on Sunday. DA Davidson reiterated an "underperform" rating and set a $7.00 price target on shares of C3.ai in a report on Tuesday, September 1st. Citigroup reiterated a "market perform" rating on shares of C3.ai in a report on Thursday, September 3rd. Citizens Jmp reissued a "market perform" rating on shares of C3.ai in a research report on Tuesday, September 29th. Finally, UBS Group restated an "underperform" rating on shares of C3.ai in a research note on Tuesday, September 1st. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and seven have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $9.36.

C3.ai Price Performance

Shares of AI opened at $11.58 on Tuesday. The firm has a 50-day moving average of $10.55 and a 200-day moving average of $9.72. C3.ai has a one year low of $7.68 and a one year high of $19.80. The company has a market cap of $1.86 billion, a PE ratio of -3.76 and a beta of 2.11.

C3.ai (NYSE:AI - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The company reported ($0.20) earnings per share for the quarter, topping analysts' consensus estimates of ($0.26) by $0.06. C3.ai had a negative net margin of 192.10% and a negative return on equity of 61.25%. The business had revenue of $52.38 million for the quarter, compared to the consensus estimate of $52.06 million. During the same period in the previous year, the company earned ($0.37) earnings per share. The firm's revenue for the quarter was down 25.4% on a year-over-year basis.

Institutional Investors Weigh In On C3.ai

Several hedge funds have recently bought and sold shares of the stock. Arizona State Retirement System boosted its position in shares of C3.ai by 3.7% in the second quarter. Arizona State Retirement System now owns 37,168 shares of the company's stock valued at $338,000 after acquiring an additional 1,310 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its position in C3.ai by 12.7% during the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 13,776 shares of the company's stock worth $116,000 after acquiring an additional 1,548 shares during the period. CoreCap Advisors LLC increased its position in C3.ai by 34.0% during the second quarter. CoreCap Advisors LLC now owns 6,145 shares of the company's stock worth $56,000 after acquiring an additional 1,560 shares during the period. Western Wealth Management LLC acquired a new stake in C3.ai in the 1st quarter worth about $26,000. Finally, Allworth Financial LP raised its stake in C3.ai by 13.6% in the 2nd quarter. Allworth Financial LP now owns 26,660 shares of the company's stock worth $242,000 after purchasing an additional 3,185 shares in the last quarter. 38.96% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, CFO Hitesh Lath sold 21,077 shares of C3.ai stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $10.48, for a total transaction of $220,886.96. Following the completion of the sale, the chief financial officer owned 371,036 shares of the company's stock, valued at approximately $3,888,457.28. The trade was a 5.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $4,764,330.14. Following the completion of the transaction, the chief executive officer owned 722,362 shares in the company, valued at approximately $7,592,024.62. This trade represents a 38.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,117,809 shares of company stock worth $11,724,230 over the last three months. Insiders own 19.80% of the company's stock.

C3.ai News Roundup

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: Northland upgrades C3.ai to Outperform: Northland Securities raised its rating from Market Perform to Outperform and increased its price target to $16 from $10. The analyst cited a potential “new growth engine” and easier year-over-year comparisons, implying roughly 38% upside from the referenced price. Northland Securities Upgrades C3.ai to Strong-Buy
• Positive Sentiment: Investor response was favorable: C3.ai was among the stronger-performing enterprise software and artificial intelligence stocks following the upgrade, as investors responded to the more optimistic growth outlook. C3.ai Soars as Northland Sees New Growth Engine
• Neutral Sentiment: Broader AI-market risks remain in focus: The International Monetary Fund identified artificial intelligence, elevated bond yields and cyber risks as potential threats to global financial markets. The concerns are industry-wide rather than specific to C3.ai, but could contribute to volatility in high-beta technology shares. AI, Bond Yields, Cyber Top IMF Risks
• Negative Sentiment: UBS remains cautious: UBS said C3.ai’s business may need several more quarters to stabilize, suggesting that the company’s growth recovery is not yet established despite Northland’s bullish view. This caution is significant given C3.ai’s recent revenue declines and continuing losses. C3.ai Needs More Quarters to Stabilize, UBS Says

C3.ai Company Profile

C3.ai, Inc is an enterprise artificial intelligence software company that develops applications and tools designed to help organizations use AI and machine learning to analyze data, automate processes and support business decision-making. The company's offerings are intended for large commercial enterprises, government agencies and other organizations managing complex operational and data environments.

Its product portfolio includes the C3 AI Platform, which provides capabilities for developing, deploying and operating AI applications, as well as prebuilt enterprise applications.

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