C3.ai (NYSE:AI) Shares Down 8.9% - What's Next?

Key Points

• C3.ai shares fell 8.9% to about $11.08 in Friday trading, with volume below the stock’s daily average.
• Analyst sentiment remains cautious: C3.ai has an average “Reduce” rating, with seven Sell, four Hold, and two Buy ratings, and an average price target of $9.36.
• The company exceeded quarterly EPS and revenue expectations, but revenue declined 25.4% year over year and losses remained substantial; insiders have also sold 1.57 million shares worth approximately $17.1 million over the past three months.

C3.ai, Inc. (NYSE:AI - Get Free Report)'s share price traded down 8.9% during trading on Friday. The company traded as low as $11.07 and last traded at $11.0750. 4,577,410 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 5,937,475 shares. The stock had previously closed at $12.16.

Wall Street Analyst Weigh In

A number of research firms have weighed in on AI. Needham & Company LLC reaffirmed a "hold" rating on shares of C3.ai in a research note on Thursday, September 3rd. Citizens Jmp reissued a "market perform" rating on shares of C3.ai in a research report on Tuesday, September 29th. Citigroup restated a "market perform" rating on shares of C3.ai in a report on Thursday, September 3rd. UBS Group restated an "underperform" rating on shares of C3.ai in a report on Tuesday, September 1st. Finally, Weiss Ratings upgraded C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have given a Sell rating to the company's stock. According to MarketBeat, C3.ai currently has an average rating of "Reduce" and an average price target of $9.36.

C3.ai Price Performance

The business's fifty day moving average is $10.66 and its 200-day moving average is $9.80. The firm has a market cap of $1.78 billion, a PE ratio of -3.58 and a beta of 2.11.

C3.ai (NYSE:AI - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.20) EPS for the quarter, topping analysts' consensus estimates of ($0.26) by $0.06. The company had revenue of $52.38 million for the quarter, compared to analysts' expectations of $52.06 million. C3.ai had a negative net margin of 192.10% and a negative return on equity of 61.25%. C3.ai's revenue was down 25.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.37) EPS. Analysts forecast that C3.ai, Inc. will post -2.21 EPS for the current year.

Insider Buying and Selling

In other news, CEO Thomas M. Siebel sold 453,314 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $10.51, for a total transaction of $4,764,330.14. Following the transaction, the chief executive officer directly owned 722,362 shares of the company's stock, valued at approximately $7,592,024.62. This trade represents a 38.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Hitesh Lath sold 21,077 shares of C3.ai stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $10.48, for a total value of $220,886.96. Following the completion of the transaction, 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 disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 1,573,172 shares of company stock valued at $17,117,621. Corporate insiders own 19.80% of the company's stock.

Institutional Investors Weigh In On C3.ai

Several institutional investors and hedge funds have recently bought and sold shares of AI. Western Wealth Management LLC bought a new stake in shares of C3.ai during the first quarter valued at approximately $26,000. AdvisorNet Financial Inc bought a new position in C3.ai in the first quarter worth $34,000. CoreCap Advisors LLC raised its holdings in C3.ai by 34.0% in the second quarter. CoreCap Advisors LLC now owns 6,145 shares of the company's stock worth $56,000 after purchasing an additional 1,560 shares in the last quarter. Versant Capital Management Inc raised its holdings in C3.ai by 1,510.1% in the second quarter. Versant Capital Management Inc now owns 6,859 shares of the company's stock worth $62,000 after purchasing an additional 6,433 shares in the last quarter. Finally, Nykredit A S purchased a new position in C3.ai during the second quarter valued at $84,000. Hedge funds and other institutional investors own 38.96% of the company's stock.

About C3.ai

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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