Wall Street Zen Downgrades BigBear.ai (NYSE:BBAI) to Sell

Key Points

• Wall Street Zen downgraded BigBear.ai to “sell” from “hold,” while Cantor Fitzgerald cut its price target from $5 to $4 and maintained a “neutral” rating. MarketBeat reports an overall consensus rating of “hold” with an average target price of $5.
• BigBear.ai shares opened at $2.79, near the bottom of their $2.59–$9.39 52-week range, with the stock down 1.6% and trading below both its 50-day and 200-day moving averages.
• Recent results showed stronger revenue, gross profit and backlog growth, but the company remains unprofitable: operating loss widened to $28.6 million, net loss reached $25.7 million and operating cash flow was negative $22.2 million. Insiders also sold shares, while institutional ownership stands at 7.55%.

BigBear.ai (NYSE:BBAI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Several other equities analysts have also recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of BigBear.ai in a research note on Friday, July 17th. Cantor Fitzgerald reduced their price target on shares of BigBear.ai from $5.00 to $4.00 and set a "neutral" rating for the company in a research note on Friday. One equities research 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. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $5.00.

BigBear.ai Trading Down 1.6%

BigBear.ai stock opened at $2.79 on Friday. BigBear.ai has a one year low of $2.59 and a one year high of $9.39. The business's fifty day moving average is $3.67 and its 200 day moving average is $4.05. The stock has a market capitalization of $1.33 billion, a PE ratio of -13.26 and a beta of 3.32. The company has a debt-to-equity ratio of 0.01, a current ratio of 6.08 and a quick ratio of 6.08.

Insider Transactions at BigBear.ai

In related news, Director Dorothy D. Hayes sold 15,000 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $4.11, for a total value of $61,650.00. Following the transaction, the director owned 204,150 shares of the company's stock, valued at approximately $839,056.50. This trade represents a 6.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Sean Raymond Ricker sold 10,000 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $4.33, for a total transaction of $43,300.00. Following the completion of the transaction, the chief financial officer directly owned 609,256 shares in the company, valued at approximately $2,638,078.48. The trade was a 1.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.57% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Van ECK Associates Corp bought a new stake in shares of BigBear.ai during the 4th quarter valued at $46,675,000. UBS Group AG increased its stake in shares of BigBear.ai by 145.7% in the 4th quarter. UBS Group AG now owns 10,386,833 shares of the company's stock worth $56,089,000 after purchasing an additional 6,158,665 shares in the last quarter. Vanguard Group Inc. raised its holdings in BigBear.ai by 18.4% in the 4th quarter. Vanguard Group Inc. now owns 32,695,344 shares of the company's stock worth $176,555,000 after purchasing an additional 5,090,508 shares during the period. Two Sigma Investments LP raised its holdings in BigBear.ai by 165.5% in the 3rd quarter. Two Sigma Investments LP now owns 4,903,920 shares of the company's stock worth $31,974,000 after purchasing an additional 3,056,597 shares during the period. Finally, Geode Capital Management LLC raised its holdings in BigBear.ai by 35.9% in the 4th quarter. Geode Capital Management LLC now owns 10,247,877 shares of the company's stock worth $55,347,000 after purchasing an additional 2,706,195 shares during the period. 7.55% of the stock is currently owned by institutional investors.

Trending Headlines about BigBear.ai

Here are the key news stories impacting BigBear.ai this week:

• Positive Sentiment: Second-quarter revenue rose approximately 13% year over year to $36.7 million, topping estimates. Gross profit increased 48.5% to $12.1 million, indicating margin improvement, while the company secured more than 20 new contracts and reported backlog growth. BigBear.ai Stock Flat Following Q2 Revenue Beat and Backlog Growth
• Positive Sentiment: Management reaffirmed full-year 2026 revenue guidance of $135 million to $165 million, a range that broadly brackets the roughly $143 million analyst consensus. The company also highlighted expanded generative-AI capabilities and strategic growth initiatives. BigBear.ai Announces Second Quarter 2026 Results
• Neutral Sentiment: BigBear.ai reported an adjusted or diluted loss of roughly $0.04-$0.05 per share, compared with a $0.06 loss a year earlier. The result met or modestly exceeded estimates, but the improvement was not enough to offset concerns about profitability. BigBear.ai Reports Q2 Loss, Tops Revenue Estimates
• Negative Sentiment: Operating loss widened to $28.6 million, net loss reached $25.7 million, and operating cash flow was negative $22.2 million. Investors remain focused on whether contract wins can translate into sustainable profits and reduce the company’s substantial cash consumption. BigBear.ai Stock Falls on Q2 2026 Earnings
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $5 to $4 and assigned a neutral rating. Although the revised target implies upside, the reduction signals limited confidence in a near-term rerating while the company remains unprofitable. BigBear.ai Price Target Lowered by Cantor Fitzgerald

BigBear.ai Company Profile

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.

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