BigBear.ai (NYSE:BBAI) Stock Price Down 7.5% - Time to Sell?

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) experienced a significant drop in its stock price, declining by 7.5% on Wednesday. The stock traded as low as $4.21 before settling at $4.45. During mid-day trading, 66,165,219 shares changed hands, marking an increase of 480% compared to the average session volume of 11,412,893 shares. Before this decline, the stock had closed at $4.81.

Analysts Set New Price Targets

In recent developments, several brokerages have issued new reports regarding BBAI. HC Wainwright raised their price target for BigBear.ai from $3.00 to $7.00 and designated the stock with a "buy" rating in a research note published on Monday. On the other hand, Cantor Fitzgerald maintained an "overweight" rating for BigBear.ai, setting a target price of $3.50 in their report dated November 6.

BigBear.ai Stock Down 7.5%

The company currently holds a quick ratio of 2.06, a current ratio of 2.06, and a debt-to-equity ratio of 2.08. Its fifty-day simple moving average stands at $2.50, while the 200-day moving average is $1.84. BigBear.ai has a market capitalization of approximately $1.12 billion, a price-to-earnings (P/E) ratio of -4.89, and a beta of 3.58.

On November 5, BigBear.ai announced its quarterly earnings data. The company reported an earnings per share (EPS) of ($0.05), which was better than the consensus estimate of ($0.07) by $0.02. However, revenue for the quarter was reported at $41.51 million, trailing the consensus estimate of $45.04 million. The firm's net margin is notably negative at 109.90%, and it recorded a negative return on equity of 138.35%. Year-over-year, BigBear.ai's revenue increased by 22.1%, while the previous year’s EPS stood at $0.03. Analysts project that BigBear.ai Holdings, Inc. will record an EPS of -0.28 for the current fiscal year.

Insider Activity at BigBear.ai

In other notable developments, CEO Amanda Long sold 200,000 shares of the firm’s stock in a transaction on December 26. The shares were sold at an average price of $4.25, resulting in a total transaction value of $850,000. Following this sale, Long now holds 2,583,254 shares valued at approximately $10,978,829.50, representing a 7.19% decrease in her position. This transaction was disclosed in a legal filing with the SEC. Additionally, Director Bbai Ultimate Holdings, LLC sold 572,817 shares on October 15 for an average price of $1.78, amounting to a total of $1,019,614.26. After this sale, the director holds 143,713,297 shares of BigBear.ai, valued at around $255,809,668.66, showing a decrease of 0.40% in their position. Insider sales totaled 782,892 shares worth approximately $1,887,246 over the last 90 days, while corporate insiders own about 1.40% of the company’s stock.

Institutional Trading of BigBear.ai

Several hedge funds have made moves in BigBear.ai’s stock recently. Sovereign Financial Group Inc. acquired a new position during the third quarter, valued at $36,000. XTX Topco Ltd also bought shares in the second quarter for about $58,000. Intech Investment Management LLC purchased additional shares valued at approximately $61,000 during the third quarter. The Manufacturers Life Insurance Company increased its stake in BigBear.ai by 135.0% in the second quarter, owning 41,073 shares worth $62,000 after acquiring an additional 23,597 shares. Koshinski Asset Management Inc. also took a new stake in BigBear.ai valued at $131,000 in the third quarter. Overall, institutional investors hold around 7.55% of the company's stock.

BigBear.ai Company Overview

BigBear.ai Holdings, Inc. specializes in providing artificial intelligence-powered decision intelligence solutions. The company offers various services including national security, supply chain management, and digital identity and biometrics solutions. Furthermore, BigBear.ai delivers solutions related to data ingestion, data enrichment, data processing, machine learning, predictive analytics, and predictive visualization.

Investment Considerations

Before making any investment decision in BigBear.ai, it's advisable to conduct thorough research. While analysts maintain a "buy" rating on the stock, some top-rated analysts suggest looking at alternative investments. Awareness of insider activity, analyst ratings, and other financial metrics can influence one's investment strategy.

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