Companies

BigBear.ai (NYSE:BBAI) Shares Gap Up – Here’s What Happened

Published December 25, 2024

On December 25, 2024, shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) experienced a gap up before the start of trading on Monday. The stock had finished the previous day at $3.11, but opened at $3.20. During the trading session, BigBear.ai shares were last seen trading at $3.23 with a total volume of 15,323,596 shares exchanged.

Wall Street Analyst Weigh In

Several analysts provided insights on BigBear.ai's stock performance. HC Wainwright restated a “buy” rating for the company's shares, assigning a price target of $3.00 in a report dated November 6. Simultaneously, Cantor Fitzgerald maintained an “overweight” rating with a price target of $3.50, also highlighted in their research note on the same date.

BigBear.ai Stock Performance

The company exhibits strong financial ratios, currently holding a current ratio of 2.06 and a quick ratio of 2.06. However, it also has a debt-to-equity ratio of 2.08. As of now, BigBear.ai has a market capitalization of approximately $934.69 million, a price-to-earnings (PE) ratio of -4.10, and a beta of 3.58. The stock’s 50-day moving average stands at $2.24, while its 200-day moving average is at $1.74.

BigBear.ai released its quarterly earnings results on November 5, revealing a loss of $0.05 per share, which was better than the analysts' consensus estimate of a loss of $0.07 per share. The company reported revenue of $41.51 million for the quarter, slightly below expectations of $45.04 million. Comparatively, the company had a negative return on equity of 138.35% along with a negative net margin of 109.90%. Despite these figures, the revenue increased by 22.1% from the previous year. During the same quarter last year, BigBear.ai had posted earnings of $0.03 per share. Analysts predict that the company's earnings per share for the current year will be around -0.28.

Insiders Place Their Bets

In related insider activity, Director Bbai Ultimate Holdings, LLC sold 572,817 shares of BigBear.ai on October 15 at an average price of $1.78, totaling $1,019,614.26. After this transaction, the director retains ownership of 143,713,297 shares, presently valued at approximately $255,809,668.66. This sale represents a decline of 0.40% in ownership. A legal filing detailing this transaction has been made available through the Securities and Exchange Commission. Currently, corporate insiders own 1.40% of the stock.

Institutional Trading of BigBear.ai

Several institutional investors and hedge funds have recently adjusted their positions in BigBear.ai. Barclays PLC significantly increased its stake by 310.3% in the third quarter, acquiring an additional 107,214 shares, bringing its total holdings to 141,766 shares worth approximately $208,000. Similarly, Geode Capital Management LLC boosted its holdings by 28.6%, now controlling 2,158,438 shares valued at $3,152,000 after purchasing an additional 479,401 shares.

XTX Topco Ltd also raised its position in BigBear.ai by 57.9%, owning 61,011 shares with a market value of $89,000 after acquiring 22,363 shares in the last quarter. Moreover, State Street Corp increased its stake by 16.8%, holding 1,864,815 shares valued at $2,723,000 after adding 267,673 shares. Intech Investment Management LLC entered the market with a new position valued at approximately $61,000. Collectively, institutional investors and hedge funds currently own 7.55% of BigBear.ai's stock.

About BigBear.ai

BigBear.ai Holdings, Inc. specializes in providing artificial intelligence-driven decision intelligence solutions. The company's offerings include services in national security, supply chain management, and digital identity and biometrics. Additionally, BigBear.ai provides solutions related to data ingestion, data enrichment, data processing, machine learning, and predictive analytics.