C3.ai (NYSE:AI) Share Price Breaks Above 200-Day Moving Average - Time to Sell?

Key Points

• C3.ai shares rose above their 200-day moving average, reaching $10.54 and last trading near $10.39, compared with a 200-day average of $9.55.
• Analyst sentiment remains bearish: the stock has a consensus “Reduce” rating, with seven Sell, four Hold, and one Buy recommendation, and an average price target of $8.70.
• Although quarterly results modestly beat expectations, C3.ai remains unprofitable, with revenue down 25.4% year over year, a negative net margin, and insiders selling more than 1.16 million shares over the past three months.

C3.ai, Inc. (NYSE:AI - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $9.55 and traded as high as $10.54. C3.ai shares last traded at $10.3850, with a volume of 3,414,225 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. KeyCorp restated an "underweight" rating on shares of C3.ai in a research report on Thursday, June 4th. Wedbush reiterated an "outperform" rating and issued a $15.00 price objective on shares of C3.ai in a report on Thursday, June 4th. UBS Group reissued an "underperform" rating on shares of C3.ai in a research report on Tuesday, September 1st. Citizens Jmp reissued a "market perform" rating on shares of C3.ai in a research report on Thursday, September 3rd. Finally, Weiss Ratings upgraded shares of C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and seven have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $8.70.

C3.ai Stock Down 2.5%

The company's fifty day moving average price is $10.07 and its 200-day moving average price is $9.55. The stock has a market capitalization of $1.67 billion, a PE ratio of -3.37 and a beta of 2.10.

C3.ai (NYSE:AI - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.20) earnings per share for the quarter, topping the consensus estimate of ($0.26) by $0.06. The company had revenue of $52.38 million for the quarter, compared to the consensus estimate of $52.06 million. C3.ai had a negative return on equity of 61.25% and a negative net margin of 192.10%.The firm's quarterly revenue was down 25.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.37) EPS. Equities research analysts anticipate that C3.ai, Inc. will post -2.2 earnings per share for the current year.

Insider Transactions at C3.ai

In related news, CEO Stephen Ehikian sold 50,542 shares of the company's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $9.45, for a total value of $477,621.90. Following the transaction, the chief executive officer owned 651,130 shares in the company, valued at $6,153,178.50. The trade was a 7.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Hitesh Lath sold 21,077 shares of the 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 sale, the chief financial officer directly owned 371,036 shares in the company, valued at $3,888,457.28. This trade represents a 5.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 1,168,351 shares of company stock valued at $12,201,852. Insiders own 19.80% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Sequoia Financial Advisors LLC purchased a new stake in shares of C3.ai during the second quarter valued at approximately $106,000. Engineers Gate Manager LP bought a new stake in shares of C3.ai during the second quarter valued at approximately $2,855,000. Allworth Financial LP raised its holdings 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 acquiring an additional 3,185 shares during the last quarter. Arizona State Retirement System raised its holdings in C3.ai by 3.7% in the 2nd quarter. Arizona State Retirement System now owns 37,168 shares of the company's stock worth $338,000 after acquiring an additional 1,310 shares during the last quarter. Finally, Nykredit A S bought a new position in C3.ai in the 2nd quarter valued at approximately $84,000. 38.96% of the stock is owned by hedge funds and other institutional investors.

C3.ai Company Profile

C3.ai, Inc develops enterprise artificial intelligence software and applications for organizations in a range of industries. Its technology is designed to help businesses use data, machine learning and predictive analytics to address operational, financial and strategic challenges.

The company's offerings include the C3 AI Platform, which provides tools for developing, deploying and operating AI applications, as well as prebuilt applications for use cases such as predictive maintenance, fraud detection, supply-chain optimization, customer engagement, energy management and regulatory compliance.

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