BigBear.ai (NYSE:BBAI) Shares Down 3.5% - Here's Why

BigBear.ai Holdings, Inc. (NYSE:BBAI - Get Free Report) experienced a decline of 3.5% in its stock price during trading on Tuesday. The stock hit a low of $8.50 before settling at $8.71. A total of 32,075,530 shares were traded, marking a significant decrease of 54% compared to the average trading volume of 69,444,023 shares. The previous day's closing price was $9.02.

Wall Street Analyst Insights

Analysts have been weighing in on BigBear.ai's performance. Cantor Fitzgerald reaffirmed an "overweight" rating for the stock while giving it a target price of $3.50 in a report released on November 6th. Meanwhile, HC Wainwright raised their target price for BigBear.ai from $3.00 to $7.00, recommending the stock as a "buy" in a report dated December 30th.

Trading Data Overview

At this moment, BigBear.ai holds a market capitalization of $2.12 billion. The company's price-to-earnings ratio stands at -9.28, and it has a beta of 3.17. With a debt-to-equity ratio of 2.08, both its quick ratio and current ratio are at 2.06. Furthermore, the 50-day simple moving average for the stock sits at $4.72, while the 200-day moving average is at $2.78.

Insider Trading Activities

Recently, insider trades have also caught some attention. Sean Bernard Battle, a director at BigBear.ai, sold 44,813 shares on January 2nd for an average price of $4.46, totaling approximately $199,866. Following this sale, he holds 137,838 shares, valued at around $614,757.48, representing a 24.53% decrease in his holdings. Furthermore, CEO Amanda Long sold 200,000 shares on December 26th, at an average price of $4.25, amounting to $850,000. After this transaction, she retains 2,583,254 shares with an estimated worth of $10,978,829.50, indicating a 7.19% reduction in her position. Overall, insiders have sold a combined 310,953 shares of the company's stock valued at $1,347,496 in the past quarter, while insiders collectively own 1.40% of the company's stock.

Institutional Investor Activity

BigBear.ai has seen various institutional investors trading its shares recently. In the fourth quarter, Cape Investment Advisory Inc. acquired a position in BigBear.ai valued at around $40,000. Other institutions, including Simon Quick Advisors LLC, Captrust Financial Advisors, Retirement Income Solutions Inc, and Bay Rivers Group, also purchased new stakes, with valuations ranging from $44,000 to $48,000. Currently, institutional investors and hedge funds account for 7.55% of the stock ownership.

About BigBear.ai

BigBear.ai Holdings, Inc. specializes in artificial intelligence-driven decision intelligence solutions, focusing on areas such as national security, supply chain management, and digital identity and biometrics. Their services include data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization.

Further Considerations

As investors look for opportunities, some analysts recommend exploring stocks other than BigBear.ai. In the current market, some stocks are garnering attention as potentially better investments. Other key investment areas include understanding the significance of ex-dividend dates, evaluating earnings reports, and assessing market trends.

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