BigBear.ai (NYSE:BBAI) Shares Up 13.8% - Here's Why

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) surged by 13.8% in trading on Tuesday. The stock reached a high of $4.47 before closing at $4.46. During this trading session, roughly 20,996,905 shares changed hands, which represented a 40% decrease compared to the average daily trading volume of 34,747,004 shares. The stock had previously finished the day at $3.92.

Recent Analyst Actions

Several financial analysts have updated their projections regarding BigBear.ai. On December 30th, HC Wainwright raised their price target for the company's shares from $3.00 to $7.00 while also providing a "buy" rating. Additionally, Cantor Fitzgerald maintained an "overweight" rating on the stock, setting a price target of $3.50 in a report released on November 6th.

Performance Overview

BigBear.ai currently holds a market capitalization of $1.06 billion, with a price-to-earnings (P/E) ratio of -4.63 and a beta of 3.21. The company's fifty-day moving average stands at $3.19, while the two-hundred-day moving average is $2.12. Key financial metrics show the company has a current ratio of 2.06, a quick ratio of 2.06, and a debt-to-equity ratio of 2.08.

The most recent earnings report for BigBear.ai was issued on November 5th, in which the company reported an earnings per share (EPS) of ($0.05). This result was better than the consensus estimate of ($0.07) by $0.02. However, the company experienced a negative return on equity of 138.35% and a net margin of -109.90%. Revenue for the quarter totaled $41.51 million, falling short of analysts’ expectations of $45.04 million. In comparison to the same quarter of the previous year, BigBear.ai experienced a revenue increase of 22.1%. Analysts forecast that BigBear.ai will report an EPS of -0.28 for the current fiscal year.

Insider Transactions

In related news, CEO Amanda Long sold 200,000 shares on December 26th, receiving an average price of $4.25 per share, totaling $850,000. Following this sale, her ownership in the company dropped to approximately 2,583,254 shares, valued at about $10.98 million. Additionally, Director Sean Bernard Battle sold 44,813 shares on January 2nd for an average price of $4.46, amounting to $199,865.98. After this transaction, Battle holds 137,838 shares, worth around $614,757.48. Overall, insiders have sold a total of 310,953 shares valued at $1,347,496 over the past quarter, with insiders holding about 1.40% of the company's stock.

Institutional Investor Activity

Recently, several institutional investors and hedge funds have adjusted their stakes in BigBear.ai. Simon Quick Advisors LLC acquired a new position worth approximately $44,000 in the fourth quarter. Similarly, Bay Rivers Group invested about $48,000 during the same period. Other investors include Sovereign Financial Group Inc. and XTX Topco Ltd, adding stakes valued at around $36,000 and $58,000, respectively. The Manufacturers Life Insurance Company increased its holdings by 135% during the second quarter and now owns 41,073 shares, a value of $62,000. Currently, institutional investors control about 7.55% of BigBear.ai stock.

Company Overview

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

Final Thoughts

Investors should consider market guidance before making decisions regarding BigBear.ai. MarketBeat regularly tracks leading analysts to identify the stocks they endorse. While BigBear.ai currently holds a "Buy" rating among several analysts, other stocks may present better investment opportunities at this time.

BigBear.ai, Stocks, Analysis