BigBear.ai (NYSE:BBAI) Stock Price Down 8% - Should You Sell?

Key Points

• BigBear.ai shares fell 8% to about $1.91, with trading volume down 53% from the stock’s average daily volume.
• Analyst views are mixed but lean cautious: the consensus rating is Hold with a $4.50 target price, while recent research includes downgrades to Sell and a price-target cut from $4 to $3.
• Quarterly results showed a sharp earnings miss: the company lost $0.19 per share versus an expected loss of $0.06, though revenue rose 31.5% year over year to $43.58 million, ahead of estimates.

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) fell 8% on Friday. The company traded as low as $1.90 and last traded at $1.9050. Approximately 16,712,900 shares traded hands during trading, a decline of 53% from the average daily volume of 35,517,504 shares. The stock had previously closed at $2.07.

Analyst Ratings Changes

BBAI has been the topic of a number of recent research reports. Wall Street Zen downgraded BigBear.ai from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Cantor Fitzgerald decreased their price target on BigBear.ai from $4.00 to $3.00 and set a "neutral" rating for the company in a report on Wednesday, October 28th. Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a research report on Thursday, October 15th. Finally, Citigroup reaffirmed a "market perform" rating on shares of BigBear.ai in a research note on Wednesday, October 28th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $4.50.

BigBear.ai Trading Down 8.0%

The stock has a market cap of $917.05 million, a PE ratio of -5.15 and a beta of 3.37. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.92 and a current ratio of 4.92. The company has a 50 day moving average of $2.54 and a two-hundred day moving average of $3.47.

BigBear.ai (NYSE:BBAI - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). BigBear.ai had a negative net margin of 126.84% and a negative return on equity of 15.17%. The business had revenue of $43.58 million during the quarter, compared to analysts' expectations of $29.93 million. During the same quarter last year, the firm earned ($0.03) earnings per share. The firm's quarterly revenue was up 31.5% compared to the same quarter last year. Sell-side analysts anticipate that BigBear.ai Holdings, Inc. will post -0.36 earnings per share for the current fiscal year.

Institutional Investors Weigh In On BigBear.ai

A number of large investors have recently modified their holdings of BBAI. Headlands Technologies LLC grew its stake in BigBear.ai by 351.8% during the 2nd quarter. Headlands Technologies LLC now owns 512,339 shares of the company's stock valued at $1,880,000 after acquiring an additional 398,936 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in BigBear.ai in the 2nd quarter worth approximately $5,243,000. WINTON GROUP Ltd acquired a new position in shares of BigBear.ai during the 2nd quarter worth approximately $1,362,000. First Trust Advisors LP boosted its holdings in shares of BigBear.ai by 18.1% during the 1st quarter. First Trust Advisors LP now owns 2,419,242 shares of the company's stock worth $8,516,000 after purchasing an additional 369,981 shares during the last quarter. Finally, Fulcrum Asset Management LLP purchased a new stake in shares of BigBear.ai in the third quarter valued at approximately $1,556,000. Hedge funds and other institutional investors own 7.55% of the company's stock.

About BigBear.ai

BigBear.ai Holdings, Inc. provides artificial intelligence and decision-intelligence solutions that help organizations analyze data and support complex operational decisions. Its services include data integration, predictive analytics, machine learning and computer vision, with applications in areas such as national security, defense, supply chain management and travel security. The company serves U.S. government customers as well as commercial organizations. Its offerings are designed to help customers combine information from multiple sources, identify patterns and improve planning and operational awareness.

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