BigBear.ai Shares Experience Gap Down Following Insider Selling

Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) saw a significant gap down before the market opened on Thursday, January 2nd, following insider selling activities. The stock had closed the previous day at $4.44, but opened at a lower price of $4.30. As of the last trading session, BigBear.ai shares were priced at $4.23, with a total trading volume of 4,135,128 shares.

On January 2nd, Sean Bernard Battle, a director at BigBear.ai, sold 44,813 shares of the company’s stock. This transaction occurred at an average price of $4.46, resulting in a total sale value of approximately $199,865.98. After conducting this sale, the director retains ownership of 137,838 shares, which are now worth about $614,757.48. This sale represents a 24.53% reduction in their ownership of BigBear.ai stock. The details of this trade have been made public through a filing with the SEC.

Analyst Ratings on BigBear.ai

BigBear.ai has been monitored closely by analysts, resulting in several reports. Cantor Fitzgerald recently reaffirmed an “overweight” rating for the shares, setting a price target of $3.50 in a note released on November 6th. Conversely, HC Wainwright increased their target on BigBear.ai from $3.00 to $7.00, assigning a “buy” rating in their report dated December 30th.

Stock Performance and Trading Trends

Following the insider selling news, BigBear.ai shares were noted to be down by 5.5%. The 50-day simple moving average for the company stands at $3.19, while the 200-day simple moving average is $2.12. With a market capitalization of $1.06 billion, the stock is currently witnessing a PE ratio of -4.62 and a high beta of 3.21, indicating increased volatility. The company reports a quick ratio of 2.06, a current ratio also at 2.06, and a debt-to-equity ratio of 2.08, suggesting a fairly leveraged position.

Quarterly Earnings Report

On November 5th, BigBear.ai announced its quarterly earnings, reporting an EPS of ($0.05) which surpassed analysts' expectations by $0.02, as the consensus estimate was ($0.07). The company experienced a negative return on equity of 138.35% and a negative net margin of 109.90%. During the quarter, BigBear.ai generated $41.51 million in revenue, which fell short of analyst predictions that anticipated $45.04 million. When compared with the same quarter of the previous year, the revenue grew by 22.1%, while the firm had achieved an EPS of $0.03 in that quarter.

Institutional Investments in BigBear.ai

Recent trading activities among hedge funds and institutional investors have also impacted BigBear.ai’s stock. Bank of Montreal Can saw a staggering 6,435.7% increase in its holdings, owning 653,570 shares valued at approximately $1,006,000 after an additional acquisition of 643,570 shares. Additionally, Geode Capital Management LLC increased its ownership by 28.6% during the third quarter, now holding 2,158,438 shares worth $3,152,000 after buying 479,401 additional shares. State Street Corp and Bank of New York Mellon Corp also raised their stakes by 16.8% and 160.5%, respectively. Institutional investors currently own around 7.55% of BigBear.ai’s total shares.

About BigBear.ai

BigBear.ai Holdings, Inc. is a company dedicated to providing artificial intelligence-powered decision intelligence solutions. The firm specializes in various areas, including national security, supply chain management, and digital identity and biometrics. Furthermore, BigBear.ai offers a range of services such as data ingestion, enrichment, processing, AI, machine learning, predictive analytics, and visualization capabilities.

BigBear.ai, Insider, Selling