Traders Purchase High Volume of Call Options on C3.ai (NYSE:AI)

On January 10, 2025, C3.ai, Inc. (NYSE:AI) experienced a significant surge in options trading. Investors showed a heightened interest by purchasing 122,512 call options on the stock. This figure marks an impressive 77% increase over the usual volume of 69,321 call options, indicating strong market sentiment towards the company's potential.

C3.ai Stock Performance

As of January 12, the price of C3.ai stock opened at $33.34. The stock has experienced notable fluctuations over the past year, with a low of $18.85 and a high of $45.08. Currently, the company's 50-day moving average stands at $34.47, while the 200-day moving average is at $28.63. With a market capitalization of $4.30 billion and a price-to-earnings ratio of -15.09, C3.ai's stock exhibits a beta of 2.00, suggesting increased volatility.

Analyst Ratings and Expectations

The company has attracted attention from numerous analysts recently, resulting in various rating updates. JPMorgan Chase & Co. downgraded C3.ai from a "neutral" to an "underweight" rating, establishing a price target of $28.00. Conversely, Morgan Stanley raised their price target from $21.00 to $32.00 while maintaining an "underweight" rating. Additionally, Piper Sandler increased its target from $24.00 to $42.00, rating it as "neutral." Canaccord Genuity Group also adjusted its target from $23.00 to $40.00, maintaining a "hold" rating. Lastly, JMP Securities upped their price target from $40.00 to $55.00 and classified it as a "market outperform." According to MarketBeat.com, the overall consensus rating for the stock leans towards "Hold," with a target price averaging $35.00.

Insider Transactions

Recent insider trading activity raises eyebrows. Director Jim H. Snabe divested 499,700 shares on December 17, 2024, at an average price of $43.05, totaling approximately $21.5 million. Post-sale, he retains 10,000 shares, valued around $430,500, a striking 98.04% reduction in his position. Similarly, CFO Hitesh Lath sold 3,949 shares at an average price of $42.36, equating to about $167,280. After this transaction, he holds 851 shares valued at roughly $36,048. Over the past three months, 668,721 shares were sold by insiders, totaling $28.4 million. Presently, insiders own 33.54% of C3.ai's stock.

Institutional Investor Activities

Several institutional investors have made recent adjustments to their stakes in C3.ai. Notably, Charles Schwab Investment Management increased its stake by 12.3% in the third quarter, acquiring an additional 92,280 shares and now holding 844,389 shares valued at $20.46 million. PDT Partners LLC and Global Assets Advisory LLC also purchased new positions valued at $1.62 million and $743,000, respectively. Overall, 38.96% of C3.ai's shares are held by institutional investors and hedge funds.

About C3.ai

C3.ai, Inc. operates as a provider of enterprise artificial intelligence software. The company's offerings include the C3 AI platform, which allows users to build and deploy AI applications, as well as tailored solutions for customer relationship management and data analysis.

trading, options, C3.ai