BigBear.ai (NYSE:BBAI) Shares Rise by 6.5% - What’s the Outlook?

BigBear.ai Holdings, Inc., trading under the ticker NYSE:BBAI, experienced a notable increase of 6.5% on Friday. The share price peaked at $2.31 during the trading session before settling at $2.29. Throughout the day, 3,914,630 shares changed hands, reflecting a 44% decrease from the stock's average trading volume of 6,931,219 shares. Prior to this increase, the stock closed at $2.15.

Analyst Ratings

Recent reports from key financial firms have impacted BBAI's stock outlook. On November 6th, HC Wainwright maintained a "buy" rating for BigBear.ai, providing a target price of $3.00. Similarly, Cantor Fitzgerald reaffirmed an "overweight" rating with a slightly higher target price of $3.50.

Stock Performance Overview

BigBear.ai exhibits a quick ratio of 2.06 and a current ratio of 2.06, with a debt-to-equity ratio standing at 2.08. Its market capitalization is approximately $568.84 million. The stock's price-to-earnings ratio is listed at -2.54, alongside a beta of 3.46, which suggests higher volatility compared to the market. The moving averages indicate a more favorable trend, with the 50-day moving average at $1.73 and the 200-day moving average at $1.56.

On November 5th, BigBear.ai reported its latest quarterly earnings, displaying a loss of ($0.05) earnings per share (EPS). This result is an improvement over analysts' expectations, which had forecasted a loss of ($0.07). For the quarter, the company generated revenue of $41.51 million, slightly below the anticipated $45.04 million. The year-over-year revenue growth was reported at 22.1%, but the company continues to show a negative net margin of 109.90% and a notably negative return on equity of 138.35%. Analysts predict an EPS of -0.28 for the current year.

Insider Transactions

Recent insider activity includes a significant sale by Bbai Ultimate Holdings, LLC, which sold 572,817 shares at an average price of $1.78 on October 15th, totaling approximately $1,019,614. This sale reduced the director's ownership of BigBear.ai stock to about 143,713,297 shares, worth approximately $255,809,668.66, reflecting a 0.40% decrease in their stake.

Institutional Investment Trends

In terms of institutional investments, several hedge funds and institutions have shifted their positions in BBAI recently. Bank of Montreal Can significantly increased its holdings by 6,435.7% in the second quarter, owning 653,570 shares worth $1,006,000 after acquiring an additional 643,570 shares. Geode Capital Management also added 479,401 shares, boosting its holdings by 28.6%, while State Street Corp enhanced its position by 16.8%, acquiring 267,673 more shares. Other notable investors include Bank of New York Mellon Corp and Vanguard Group Inc., which increased their respective stakes by 160.5% and 8.9%. Overall, institutional investors hold 7.55% of BigBear.ai's stock.

Company Overview

BigBear.ai Holdings, Inc. specializes in providing decision intelligence solutions powered by artificial intelligence, encompassing areas such as national security, supply chain management, and digital identity solutions. The company also focuses on data processing, machine learning, predictive analytics, and data enrichment services.

BigBear.ai, Stocks, Earnings