BigBear.ai Stock Prices Drop After Insider Sale

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) fell by 3.4% during trading on Thursday. The decline followed news that an insider sold a substantial number of shares in the company. At one point, the stock price reached as low as $4.15 before settling at $4.29. During mid-day trading, around 10,266,361 shares were exchanged, which is a significant drop of 71% compared to the average daily trading volume of 35,461,039 shares. The stock had closed at $4.44 the previous day.

Insider Selling Details

The decline in stock price correlates to a transaction by Director Sean Bernard Battle, who sold 44,813 shares of BigBear.ai on January 2nd. The shares were sold at an average price of $4.46, resulting in a total sale value of approximately $199,865.98. Following this sale, Battle's ownership in the company decreased by 24.53%, and he now holds 137,838 shares, valued at about $614,757.48. This transaction was reported in a filing with the SEC, accessible through their official website.

Analyst Perspectives

Wall Street analysts have provided mixed reviews regarding BBAI shares. HC Wainwright recently increased their price target for the stock from $3.00 to $7.00, maintaining a "buy" rating. In contrast, Cantor Fitzgerald reiterated an "overweight" rating with a target price set at $3.50 for BigBear.ai shares.

Overview of BigBear.ai's Performance

BigBear.ai currently has a market capitalization of approximately $1.09 billion. Notably, its price-to-earnings (PE) ratio stands at -4.76, and it has a beta of 3.21, indicating a higher volatility compared to the market. The firm’s financial ratios include a current ratio and quick ratio of both 2.06, while the debt-to-equity ratio is 2.08. Furthermore, the stock's fifty-day moving average is $3.19, with a two-hundred day moving average at $2.12.

Recent Earnings Report

BigBear.ai released its quarterly earnings data on November 5th, reporting an earnings per share (EPS) of ($0.05), which was better than the consensus estimate of ($0.07). However, the company recorded a negative return on equity of 138.35% and a negative net margin of 109.90%. The quarterly revenue amounted to $41.51 million, falling short of analyst expectations that estimated revenue would reach $45.04 million. This marked a 22.1% increase in revenue compared to the same quarter the year prior.

Institutional Activity

Several institutional investors have made recent adjustments to their holdings in BigBear.ai. For instance, Simon Quick Advisors LLC acquired a new stake valued at about $44,000 during the fourth quarter, while Bay Rivers Group invested approximately $48,000 in the same timeframe. Sovereign Financial Group Inc. and XTX Topco Ltd also established new positions earlier this year. Overall, institutional investors now own 7.55% of BigBear.ai's shares.

About BigBear.ai

BigBear.ai Holdings, Inc. specializes in artificial intelligence-powered decision intelligence solutions. Its offerings include services related to national security, supply chain management, and digital identity and biometrics. The company is committed to delivering solutions and services in data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization.

Conclusion

The recent insider selling and stock price drop have raised some eyebrows among investors. However, analysts suggest a potential for growth, encouraging continued observation of BigBear.ai’s stock performance.

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