BigBear.ai (NYSE:BBAI) Shares Fall 3.5% - Should Investors Consider Selling?

BigBear.ai Holdings, Inc. (NYSE:BBAI) saw its stock price decline by 3.5% on Tuesday. The shares dropped to a low of $8.50 before concluding the day at $8.71. During the day, 32,075,530 shares were traded, marking a significant drop of 54% from the average trading volume of 69,444,023 shares. The previous closing price was $9.02.

Insights from Wall Street Analysts

Analysts have been actively discussing BigBear.ai. Notably, Cantor Fitzgerald maintained an "overweight" rating and set a target price of $3.50 for the stock. Meanwhile, HC Wainwright raised their target from $3.00 to $7.00, assigning a "buy" rating in their report dated December 30.

Recent Trading Performance

BigBear.ai's market capitalization stands at $1.90 billion, with a P/E ratio of -8.28 and a beta of 3.17, indicating high volatility. The company's quick and current ratios are both at 2.06, while the debt-to-equity ratio is at 2.08. Currently, the 50-day moving average is observed at $4.91, and the 200-day moving average is $2.85.

Insider Trading Activity

In insider trading news, CEO Amanda Long sold 66,140 shares on January 6 at an average price of $4.50, totaling $297,630. Following this sale, she retains ownership of 2,445,449 shares, worth approximately $11 million. This transaction represents a 2.63% decrease in her total shares. Additionally, Director Sean Bernard Battle sold 44,813 shares on January 2 for an average price of $4.46, amounting to about $199,865.98, which was a 24.53% reduction of his ownership. For the last quarter, insiders sold a total of 310,953 shares valued at $1,347,496, resulting in insiders owning 1.40% of the company's stock.

Institutional Investor Activity

On the institutional side, several hedge funds have modified their stakes in BigBear.ai. AE Industrial Partners LP made a significant investment in the fourth quarter, totaling around $284,721,000. Meanwhile, TFG Asset Management GP Ltd and Soviero Asset Management LP entered new positions valued at $4,005,000 and $3,248,000, respectively. Geode Capital Management LLC increased its holdings by 28.6% during the third quarter, acquiring nearly 479,401 additional shares, bringing its total to 2,158,438 shares. Similarly, State Street Corp raised its stake by 16.8% in the third quarter. As it stands, institutional investors hold approximately 7.55% of BigBear.ai's shares.

Understanding BigBear.ai

BigBear.ai Holdings, Inc. offers advanced artificial intelligence solutions focused on decision intelligence. Their services include solutions for national security, supply chain management, as well as digital identity and biometrics. The company also specializes in data processing, artificial intelligence, machine learning, predictive analytics, and visualization.

Final Thoughts

As investors consider their options, it's worth noting that while BigBear.ai has garnered a "buy" rating from several analysts, other stocks are also being highlighted that may offer better opportunities right now. Analysts suggest reviewing additional stocks to assess their potential before making a decision regarding BBAI.

Stocks, Market, Investment