BigBear.ai (NYSE:BBAI) Shares Rise 6.5% - Is It Still a Buy?

BigBear.ai Holdings, Inc. (NYSE:BBAI) saw its stock price increase by 6.5% on Friday, reaching a high of $2.31 before settling at $2.29. The trading volume during the day was 3,914,630 shares, which is a decrease of 44% compared to the average volume of 6,931,219 shares. Prior to this rise, the stock closed at $2.15.

Recent Ratings Changes

BigBear.ai has been reviewed by several analysts recently. HC Wainwright maintained a "buy" rating for the stock and set a target price of $3.00 in a report dated November 6th. In the same vein, Cantor Fitzgerald reaffirmed an "overweight" rating with a target price of $3.50 for BigBear.ai shares.

Stock Performance Metrics

The company has a quick ratio of 2.06 and a current ratio of 2.06, with a debt-to-equity ratio of 2.08. Its market capitalization is $568.84 million. The price-to-earnings ratio stands at -2.54, while its beta is at 3.46. The stock’s fifty-day moving average is $1.73, and its 200-day moving average is $1.56.

Currently, BigBear.ai recently reported its earnings for the quarter on November 5th. The company posted earnings of ($0.05) per share, which exceeded the consensus estimate of ($0.07) per share by $0.02. The total revenue for the quarter was $41.51 million, falling short of the analyst estimates of $45.04 million. The net margin for the company was negative at 109.90%, and the return on equity was negative at 138.35%. The revenue reflected a year-over-year increase of 22.1%. In the previous year’s quarter, the company recorded earnings of $0.03 per share. Analysts predict that BigBear.ai will report an earnings loss of -0.28 per share for the current year.

Insider Transactions

Regarding insider trading, Bbai Ultimate Holdings, LLC, a director of BigBear.ai, sold 572,817 shares on October 15th at an average price of $1.78, amounting to approximately $1,019,614. After this transaction, the director retains ownership of about 143,713,297 shares, worth roughly $255,809,668. The sale represents a minor 0.40% reduction in ownership. This transaction was reported to the SEC and is available for public viewing. Insider ownership of the company stands at 1.40%.

Institutional Investor Activities

In the latest developments, several institutional investors have adjusted their holdings in BigBear.ai. For instance, Bank of Montreal Can increased its stake by 6,435.7% in the second quarter, acquiring a total of 653,570 shares valued at about $1,006,000. Geode Capital Management LLC also expanded its holdings by 28.6% in the third quarter, now owning 2,158,438 shares worth $3,152,000 after purchasing an additional 479,401 shares. State Street Corp raised its position by 16.8%, now holding 1,864,815 shares valued at $2,723,000 after acquiring 267,673 more shares. Furthermore, Bank of New York Mellon Corp saw a substantial increase of 160.5%, adding 189,593 shares to its portfolio. Vanguard Group Inc. has also increased its stake by 8.9%. Currently, approximately 7.55% of the stock is owned by institutional investors and hedge funds.

Company Overview

BigBear.ai Holdings, Inc. specializes in providing artificial intelligence-powered decision intelligence solutions. The company focuses on areas such as national security, supply chain management, and digital identity alongside biometrics solutions. Additionally, it offers services related to data ingestion, processing, enhancement, and employs advanced technologies like machine learning and predictive analytics.

Investment Considerations

Before investing in BigBear.ai, it's worth noting that while the stock is currently rated as a "Buy" by analysts, some of the top research analysts have suggested alternative stocks that may offer better investment opportunities.

BigBear.ai, Stock, Investment