BigBear.ai (NYSE:BBAI) Stock Price Down 7.5% - Time to Sell?

BigBear.ai Holdings, Inc. (NYSE:BBAI) saw its stock price decrease by 7.5% on Wednesday. The shares traded as low as $4.21 and closed last at $4.45, significantly lower than its previous close of $4.81. During the mid-day trading session, a total of 66,165,219 shares swapped hands, which marks a substantial increase of 480% compared to the average trading volume of 11,412,893 shares.

New Price Targets Set by Analysts

Recently, a number of brokerage firms have provided updated insights regarding BBAI's stock. HC Wainwright has raised its price target on the shares from $3.00 to $7.00 and assigned a "buy" rating in a report released on Monday. Meanwhile, Cantor Fitzgerald has reaffirmed an "overweight" rating while setting a target price of $3.50 in their report issued on November 6.

Understanding BigBear.ai's Current Position

BigBear.ai currently holds a quick ratio and current ratio of 2.06, along with a debt-to-equity ratio of 2.08. The company's stock has a 50-day simple moving average of $2.50 and a 200-day simple moving average of $1.84. Its market capitalization stands at approximately $1.12 billion, with a P/E ratio of -4.89 and a beta of 3.58.

On November 5, BigBear.ai reported its quarterly earnings, posting an EPS of ($0.05), which was better than the consensus estimate of ($0.07). It generated revenues of $41.51 million for the quarter, although this fell short of analysts' expectations of $45.04 million. The company reported a negative net margin of 109.90% and a negative return on equity of 138.35%. Compared to the same quarter the previous year, revenue has increased by 22.1%.

Insider Sale Activity

In internal stock transactions, CEO Amanda Long sold 200,000 shares on December 26 at an average price of $4.25, totaling $850,000. Following this transaction, she still owns 2,583,254 shares, which are valued at around $10,978,829.50, marking a 7.19% decrease in her holdings. Additionally, on October 15, Director Bbai Ultimate Holdings, LLC sold 572,817 shares at an average price of $1.78 for a total value of $1,019,614.26, which represents a 0.40% drop in their stake.

Within the last 90 days, corporate insiders have sold a total of 782,892 shares valued at around $1,887,246. Presently, corporate insiders own approximately 1.40% of BigBear.ai's stock.

Institutional Investment Developments

Several institutional investors have made recent changes to their positions in BBAI. Sovereign Financial Group Inc. acquired shares valued at around $36,000 in the third quarter. XTX Topco Ltd. also established a new stake worth about $58,000 in the second quarter. Intech Investment Management LLC purchased new shares valued at $61,000 during the third quarter, while The Manufacturers Life Insurance Company increased its position by 135.0% in the second quarter to hold 41,073 shares valued at $62,000.

In total, institutional investors now own 7.55% of BigBear.ai's stock, highlighting some level of institutional interest despite the recent decline in share price.

About BigBear.ai

BigBear.ai Holdings, Inc. focuses on providing artificial intelligence-driven decision intelligence solutions. Its offerings include services related to national security, supply chain management, and digital identity and biometrics, along with data ingestion, processing, AI, machine learning, predictive analytics, and visualization solutions.

Final Thoughts

Given the current market conditions and insider sales, investors may be questioning whether now is the right time to sell BigBear.ai shares. It’s essential to weigh the recent performance and analyst recommendations against the broader market trends before making any decisions.

BigBear.ai, Stock, Investment