BigBear.ai (NYSE:BBAI) Reaches New 1-Year Low - Time to Sell?

Key Points

• BigBear.ai shares fell to a new 52-week low of $2.34, trading significantly below their 50-day and 200-day moving averages amid heavy volume.
• Analyst sentiment is mixed but cautious: Wall Street Zen and Weiss Ratings issued “sell” views, while Cantor Fitzgerald maintained a “neutral” rating and cut its price target to $4.00. The consensus rating is “Hold,” with an average price target of $5.00.
• BigBear.ai’s latest quarterly revenue rose 12.9% year over year to $36.75 million and met earnings expectations, but the company remains unprofitable, reporting a negative net margin of 65.2% and analysts forecasting a full-year loss.

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) reached a new 52-week low during mid-day trading on Friday. The stock traded as low as $2.34 and last traded at $2.4210, with a volume of 24926340 shares changing hands. The stock had previously closed at $2.51.

Analysts Set New Price Targets

Several equities analysts have commented on BBAI shares. Wall Street Zen downgraded shares of BigBear.ai from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Cantor Fitzgerald reduced their price target on BigBear.ai from $5.00 to $4.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of BigBear.ai in a research note on Friday, July 17th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $5.00.

BigBear.ai Stock Performance

The company has a market cap of $1.16 billion, a price-to-earnings ratio of -11.53 and a beta of 3.37. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.67 and a quick ratio of 5.67. The firm has a fifty day simple moving average of $2.94 and a 200 day simple moving average of $3.45.

BigBear.ai (NYSE:BBAI - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($0.05) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.05). The business had revenue of $36.75 million during the quarter, compared to analysts' expectations of $36.37 million. BigBear.ai had a negative net margin of 65.20% and a negative return on equity of 13.44%. BigBear.ai's revenue for the quarter was up 12.9% on a year-over-year basis. During the same period in the previous year, the company earned ($0.71) earnings per share. On average, sell-side analysts expect that BigBear.ai Holdings, Inc. will post -0.22 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. A&I Financial Services LLC bought a new stake in BigBear.ai during the second quarter valued at about $37,000. Hollencrest Capital Management bought a new position in shares of BigBear.ai in the first quarter worth about $41,000. Krilogy Financial LLC acquired a new position in shares of BigBear.ai during the 1st quarter worth about $43,000. DV Trading LLC lifted its position in shares of BigBear.ai by 160.8% during the 1st quarter. DV Trading LLC now owns 13,344 shares of the company's stock worth $47,000 after purchasing an additional 8,227 shares during the last quarter. Finally, Balefire LLC bought a new stake in BigBear.ai during the 2nd quarter valued at approximately $49,000. Institutional investors and hedge funds own 7.55% of the company's stock.

About BigBear.ai

BigBear.ai Holdings, Inc provides artificial intelligence, machine learning and data analytics solutions designed to help organizations make decisions in complex, data-intensive environments. The company's capabilities include predictive analytics, computer vision, data integration, cloud-based systems and decision-support tools that help customers monitor conditions, identify risks, forecast outcomes and coordinate operations.

The company primarily serves the U.S. government, including defense, intelligence, national security, border security and transportation-related agencies.

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