BigBear.ai Shares Down 6.3% Amid Insider Selling

BigBear.ai Holdings, Inc. (NYSE:BBAI) experienced a decline in its share price, dropping by 6.3% during midday trading on Friday due to insider selling. The stock traded as low as $3.84 before recovering slightly to close at $4.17. Notably, the trading volume reached 43,866,538 shares, which is significantly higher than the average volume of 10,826,526 shares. The stock had previously closed at $4.45.

The decline in share price came after CEO Amanda Long sold 200,000 shares of the company on December 26 for an average price of $4.25, amounting to a total transaction value of $850,000. Following this sale, Long's ownership in BigBear.ai decreased to 2,583,254 shares, with a total value estimated at $10,978,829. This represents a reduction of approximately 7.19% in her stake. The details of the transaction have been filed with the Securities and Exchange Commission.

Recent Analyst Ratings

In the wake of these developments, analysts have shared their opinions on BigBear.ai. Cantor Fitzgerald reaffirmed an "overweight" rating with a price target of $3.50 in a note dated November 6. Similarly, HC Wainwright maintained a "buy" rating, setting a target price of $3.00 for the company’s shares.

Company Performance Overview

BigBear.ai's key financial metrics show a current ratio of 2.06 and a quick ratio of 2.06, with a debt-to-equity ratio of 2.08. The firm has a 50-day moving average of $2.38 and a 200-day moving average of $1.79. The company’s market capitalization is around $1.05 billion, with a PE ratio of -4.63 and a beta of 3.58.

In its latest quarterly earnings report released on November 5, BigBear.ai posted an earnings per share (EPS) of ($0.05), surpassing analysts' expectations of ($0.07). The company reported revenues of $41.51 million for the quarter, which fell short of the consensus estimate of $45.04 million. Compared to the same quarter in the previous year, the revenue increased by 22.1%. Analysts predict that BigBear.ai will post an EPS of -0.28 for the current fiscal year.

Institutional Investor Activity

Recent changes in BigBear.ai's shareholder structure indicate increased activity among institutional investors. The Bank of New York Mellon Corp raised its stake in the company by 160.5% during the second quarter, acquiring an additional 189,593 shares for a total of 307,692 shares worth $465,000. Rhumbline Advisers also increased its holdings by 206.2% during the same period. Other institutions, such as XTX Topco Ltd and Bank of Montreal Can, have also adjusted their positions in the company, with the latter increasing its stake dramatically by over 6,400%. Currently, institutional investors own approximately 7.55% of BigBear.ai's stock.

About BigBear.ai

BigBear.ai Holdings, Inc. specializes in artificial intelligence-powered decision intelligence solutions, providing services in national security, supply chain management, digital identity, and biometrics. The company offers a range of solutions, including data ingestion, processing, machine learning, predictive analytics, and visualization.

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