BigBear.ai Stock Price Declines After Insider Sale

BigBear.ai Holdings, Inc. (NYSE:BBAI) saw its stock price fall by 3.4% during trading on Thursday, following the news of insider selling within the company. The stock dipped to a low of $4.15 and ultimately recorded a last traded price of $4.29. During mid-day trading, around 10,266,361 shares exchanged hands, amounting to a steep decline of 71% compared to the average daily volume of 35,461,039 shares. Previously, the stock had closed at $4.44.

Insider Selling Details

The decline in stock price was triggered by the sale of shares by Director Sean Bernard Battle. On January 2nd, he sold 44,813 shares of BigBear.ai at an average price of $4.46, amounting to a total of $199,865.98. Following this transaction, he continues to own 137,838 shares, which are valued at approximately $614,757.48. This sale resulted in a 24.53% reduction in his ownership of the stock, and the details were disclosed in a filing with the SEC.

Analyst Ratings and Predictions

Market analysts have provided various ratings and price targets for BBAI. HC Wainwright upgraded their price target for BigBear.ai from $3.00 to $7.00, attaching a "buy" rating in a report dated December 30th. Meanwhile, Cantor Fitzgerald reiterated an "overweight" rating and set a target price of $3.50 in a report released on November 6th.

Performance Metrics

BigBear.ai has a market capitalization of approximately $1.09 billion. The company reports a negative PE ratio of -4.76 and a beta of 3.21. Its liquidity ratios are also strong, reflecting a current ratio of 2.06 and a quick ratio of 2.06, while the debt-to-equity ratio stands at 2.08. The fifty-day moving average price is recorded at $3.19, with a two-hundred-day moving average of $2.12.

Recent Earnings Announcement

On November 5th, BigBear.ai reported its quarterly earnings. The company posted an earnings per share (EPS) of ($0.05), outperforming the consensus estimate of ($0.07) by $0.02. Although still negative, the company’s return on equity was noted at -138.35%, with a net margin of -109.90%. The revenue for this quarter totaled $41.51 million, which was shy of the analyst estimates of $45.04 million. This was an improvement from the same period last year, where the company reported an EPS of $0.03.

Institutional Investor Activity

Recently, institutional investors have adjusted their holdings in BigBear.ai. Simon Quick Advisors LLC acquired a new stake valued at approximately $44,000 in the fourth quarter, while Bay Rivers Group bought shares worth around $48,000. Sovereign Financial Group Inc. and XTX Topco Ltd also purchased new positions valued at $36,000 and $58,000, respectively. Notably, The Manufacturers Life Insurance Company increased its stake in BigBear.ai by 135.0% during the second quarter and now owns shares worth $62,000. Overall, institutional investors hold about 7.55% of the company's stock.

Company Overview

BigBear.ai Holdings, Inc. specializes in artificial intelligence-powered decision intelligence solutions, combining various services including national security, supply chain management, and digital identity and biometrics. The firm’s offerings encompass data ingestion, processing, enrichment, predictive analytics, artificial intelligence, machine learning, and predictive visualization solutions.

Stocks, Insider, Trading