Wedbush Reiterates Outperform Rating for C3.ai (NYSE:AI)

Key Points

• Wedbush reaffirmed an Outperform rating on C3.ai and kept a $15 price target, implying about 71.5% upside from the stock’s current level.
• Recent analyst sentiment remains mixed overall: several firms have cut ratings or targets, and MarketBeat’s data shows an average rating of “Reduce” with an average price target of $15.93.
• C3.ai’s latest earnings were weak, with EPS of -$0.40 and revenue of $53.26 million both missing estimates; the company also reported a 46.1% year-over-year revenue decline.

C3.ai (NYSE:AI - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at Wedbush in a research report issued on Wednesday,Benzinga reports. They currently have a $15.00 price target on the stock. Wedbush's price objective would suggest a potential upside of 71.53% from the company's current price.

AI has been the subject of a number of other reports. Wolfe Research restated an "underperform" rating and set a $6.00 price objective on shares of C3.ai in a research note on Thursday, February 26th. KeyCorp reduced their price target on shares of C3.ai from $10.00 to $6.00 and set an "underweight" rating for the company in a report on Thursday, February 26th. Bank of America set a $10.00 price target on shares of C3.ai in a research report on Friday, January 30th. Citizens Jmp downgraded shares of C3.ai from an "outperform" rating to a "market perform" rating in a research report on Thursday, February 26th. Finally, DA Davidson reduced their target price on shares of C3.ai from $13.00 to $7.00 and set an "underperform" rating for the company in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, seven have assigned a Hold rating and six have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $15.93.

C3.ai Price Performance

Shares of NYSE:AI traded down $0.05 during trading on Wednesday, reaching $8.75. 1,049,598 shares of the company's stock traded hands, compared to its average volume of 6,097,888. The stock has a market capitalization of $1.27 billion, a P/E ratio of -2.78 and a beta of 2.00. C3.ai has a 12 month low of $7.68 and a 12 month high of $30.24. The company has a 50 day moving average of $8.86 and a 200-day moving average of $11.93.

C3.ai (NYSE:AI - Get Free Report) last issued its earnings results on Wednesday, February 25th. The company reported ($0.40) EPS for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.11). The company had revenue of $53.26 million during the quarter, compared to analyst estimates of $75.91 million. C3.ai had a negative net margin of 141.35% and a negative return on equity of 55.40%. The business's revenue was down 46.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.12) earnings per share. Equities research analysts predict that C3.ai will post -3.22 earnings per share for the current fiscal year.

Insider Activity at C3.ai

In other news, CEO Stephen Bradley Ehikian sold 52,194 shares of the company's stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $8.22, for a total value of $429,034.68. Following the completion of the sale, the chief executive officer directly owned 721,485 shares of the company's stock, valued at approximately $5,930,606.70. This represents a 6.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Jim H. Snabe acquired 25,000 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was bought at an average price of $9.00 per share, with a total value of $225,000.00. Following the completion of the acquisition, the director directly owned 395,000 shares of the company's stock, valued at approximately $3,555,000. This represents a 6.76% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have sold 1,111,051 shares of company stock worth $9,547,130. 26.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On C3.ai

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quantbot Technologies LP lifted its position in shares of C3.ai by 2,831.4% in the third quarter. Quantbot Technologies LP now owns 554,472 shares of the company's stock worth $9,615,000 after purchasing an additional 535,557 shares in the last quarter. Vanguard Group Inc. grew its position in C3.ai by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 14,469,953 shares of the company's stock valued at $195,055,000 after purchasing an additional 108,011 shares in the last quarter. Clare Market Investments LLC acquired a new position in C3.ai in the 3rd quarter valued at approximately $2,207,000. SG Americas Securities LLC lifted its position in C3.ai by 115.0% in the 4th quarter. SG Americas Securities LLC now owns 384,486 shares of the company's stock worth $5,183,000 after buying an additional 205,640 shares in the last quarter. Finally, Neo Ivy Capital Management acquired a new stake in shares of C3.ai during the 3rd quarter valued at $2,010,000. Institutional investors own 38.96% of the company's stock.

About C3.ai

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.

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