BigBear.ai (NYSE:BBAI) Stock Falls 4.9% - What's Next?

Key Points

• BigBear.ai shares fell 4.9% to $2.6050, with trading volume well below its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but cautious: the consensus rating is Hold with a $5.00 target price, while recent reports included a price-target cut to $4.00 and downgrades to Sell.
• BigBear.ai met quarterly EPS expectations at a $0.05 loss and exceeded revenue estimates with $36.75 million, up 12.9% year over year. However, the company continues to report negative profitability, including a 65.20% net margin.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report)'s share price fell 4.9% during trading on Friday. The company traded as low as $2.59 and last traded at $2.6050. Approximately 9,792,550 shares traded hands during trading, a decline of 74% from the average daily volume of 37,875,043 shares. The stock had previously closed at $2.74.

Wall Street Analyst Weigh In

BBAI has been the subject of a number of recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a research note on Friday, July 17th. Cantor Fitzgerald lowered their target price on BigBear.ai from $5.00 to $4.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Finally, Wall Street Zen downgraded shares of BigBear.ai from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. One 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's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $5.00.

BigBear.ai Trading Down 4.9%

The firm has a fifty day simple moving average of $2.96 and a two-hundred day simple moving average of $3.50. The firm has a market capitalization of $1.25 billion, a P/E ratio of -12.40 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.

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

Institutional Investors Weigh In On BigBear.ai

Institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC increased its stake in shares of BigBear.ai by 617.5% in the fourth quarter. Root Financial Partners LLC now owns 5,381 shares of the company's stock worth $29,000 after purchasing an additional 4,631 shares in the last quarter. A&I Financial Services LLC purchased a new stake in shares of BigBear.ai during the 2nd quarter valued at approximately $37,000. Hollencrest Capital Management bought a new position in BigBear.ai in the 1st quarter worth approximately $41,000. Krilogy Financial LLC purchased a new position in BigBear.ai in the 1st quarter valued at approximately $43,000. Finally, DV Trading LLC grew its stake in BigBear.ai by 160.8% in the 1st quarter. DV Trading LLC now owns 13,344 shares of the company's stock valued at $47,000 after buying an additional 8,227 shares in the last quarter. 7.55% of the stock is owned by hedge funds and other institutional investors.

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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