C3.ai (NYSE:AI) Stock Jumps 5.5% - Here's Why

Key Points

• C3.ai shares rose 5.5% to about $10.91, trading above both the 50-day and 200-day moving averages despite notably lower-than-average volume.
• The company’s latest quarterly results beat expectations, with an adjusted loss of $0.20 per share versus the $0.26 estimate and revenue of $52.38 million; however, revenue declined 25.4% year over year and profitability remained deeply negative.
• Analyst sentiment remains cautious: C3.ai has an average “Reduce” rating and an $8.70 price target, while insiders sold more than 1.1 million shares worth approximately $11.7 million over the past 90 days.

C3.ai, Inc. (NYSE:AI - Get Free Report) shares shot up 5.5% on Wednesday. The stock traded as high as $10.97 and last traded at $10.9120. 536,108 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 5,945,981 shares. The stock had previously closed at $10.34.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AI. Canaccord Genuity Group restated a "hold" rating and set a $10.00 price objective on shares of C3.ai in a report on Thursday, September 3rd. Weiss Ratings upgraded C3.ai from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. Needham & Company LLC reissued a "hold" rating on shares of C3.ai in a research report on Thursday, September 3rd. Citigroup restated a "market perform" rating on shares of C3.ai in a research note on Thursday, September 3rd. Finally, DA Davidson reaffirmed an "underperform" rating and set a $7.00 price target on shares of C3.ai in a research report on Tuesday, September 1st. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and seven have issued a Sell rating to the company's stock. According to MarketBeat.com, C3.ai currently has an average rating of "Reduce" and an average price target of $8.70.

C3.ai Trading Up 4.7%

The firm has a market capitalization of $1.74 billion, a P/E ratio of -3.51 and a beta of 2.10. The company has a 50-day moving average of $10.10 and a 200-day moving average of $9.56.

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

Insider Activity

In related news, CEO Thomas Siebel sold 162,247 shares of the business's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $10.54, for a total value of $1,710,083.38. Following the completion of the sale, the chief executive officer directly owned 722,362 shares of the company's stock, valued at $7,613,695.48. The trade was a 18.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Hitesh Lath sold 21,077 shares of the company's 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 transaction, the chief financial officer directly owned 371,036 shares in the company, valued at approximately $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 90 days, insiders sold 1,117,809 shares of company stock valued at $11,724,230. 19.80% of the stock is currently owned by company insiders.

Institutional Trading of C3.ai

Several hedge funds have recently bought and sold shares of AI. Bank of America Corp DE boosted its stake in shares of C3.ai by 55.1% in the 1st quarter. Bank of America Corp DE now owns 3,282,183 shares of the company's stock worth $27,636,000 after buying an additional 1,166,302 shares during the last quarter. First Trust Advisors LP increased its stake in shares of C3.ai by 67.3% in the first quarter. First Trust Advisors LP now owns 1,215,341 shares of the company's stock worth $10,233,000 after purchasing an additional 488,710 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in C3.ai by 0.8% during the 1st quarter. Bank of New York Mellon Corp now owns 690,694 shares of the company's stock valued at $5,816,000 after acquiring an additional 5,631 shares during the period. Edgestream Partners L.P. lifted its holdings in C3.ai by 247.5% during the 1st quarter. Edgestream Partners L.P. now owns 658,573 shares of the company's stock worth $5,545,000 after purchasing an additional 469,057 shares in the last quarter. Finally, EVR Research LP grew its stake in C3.ai by 223.8% during the fourth quarter. EVR Research LP now owns 600,400 shares of the company's stock valued at $8,093,000 after acquiring an additional 415,000 shares in the last quarter. Institutional investors and hedge funds own 38.96% of the company's stock.

About C3.ai

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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