BigBear.ai (NYSE:BBAI) Shares Increase by 6.5% - Should Investors Consider Buying?

On Friday, shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) experienced a significant jump of 6.5%. The stock reached a peak of $2.31 before settling at $2.29 by the end of the trading day. During mid-day trading, a total of 3,914,630 shares exchanged hands, marking a noticeable decline of 44% from the average trading volume of 6,931,219 shares. The stock had previously closed at $2.15.

Analyst Recommendations

Recently, BigBear.ai has garnered attention from analysts, with several reports highlighting its potential. HC Wainwright maintained a "buy" rating for the stock while establishing a target price of $3.00. Simultaneously, Cantor Fitzgerald also reaffirmed an "overweight" rating and set a target price of $3.50, both in reports published on November 6th.

Performance Overview

BigBear.ai's financial metrics reveal a quick ratio of 2.06 and a current ratio of 2.06, alongside a debt-to-equity ratio of 2.08. The company's market capitalization stands at approximately $568.84 million, with a price-to-earnings ratio of -2.54, reflecting a beta of 3.46, which indicates higher volatility compared to the market. The stock's fifty-day moving average is $1.73, and its 200-day moving average is $1.56.

The latest quarterly earnings report was announced on November 5th, revealing that BigBear.ai posted earnings of ($0.05) per share, surpassing the consensus estimate of ($0.07) by $0.02. Total revenue for the quarter was reported at $41.51 million, although it fell short of analyst expectations, which had estimated revenue of $45.04 million. The firm recorded a negative net margin of 109.90% and a return on equity of -138.35%. However, revenue showed a year-over-year increase of 22.1%. For the same quarter in the previous year, the company had earned $0.03 EPS. Currently, analysts project that BigBear.ai will announce an EPS of -0.28 for the present year.

Insider Activity

In recent insider news, Bbai Ultimate Holdings, LLC, a director at BigBear.ai, disposed of 572,817 shares on October 15th at an average price of $1.78, totaling approximately $1,019,614.26. Despite this sale, the director still holds around 143,713,297 shares valued at about $255,809,668.66. This transaction represented a 0.40% reduction in their total ownership. The details of this sale were filed with the SEC, available for public viewing. Corporate insiders currently possess about 1.40% of the company's stock.

Institutional Investment Changes

Several institutional investors and hedge funds have recently adjusted their positions in BigBear.ai. Bank of Montreal Can significantly boosted its stake by 6,435.7% during the second quarter, amassing 653,570 shares valued at $1,006,000 after acquiring an additional 643,570 shares. Geode Capital Management LLC also increased its holdings by 28.6% in the third quarter, now owning 2,158,438 shares worth $3,152,000 after buying 479,401 shares. Additionally, State Street Corp and Bank of New York Mellon Corp raised their stakes by 16.8% and 160.5%, respectively. Currently, institutional investors hold about 7.55% of BigBear.ai's stock.

About BigBear.ai

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

Conclusion

Investors pondering whether to buy shares of BigBear.ai today may want to analyze the recent ratings, financial performance, and insider activity before making a decision. Given the upward movement in shares, the future trajectory of BigBear.ai certainly warrants attention.

BigBear.ai, Stocks, Earnings