Stocks

BigBear.ai (NYSE:BBAI) Shares Gap Up – Here’s What Happened

Published December 25, 2024

On December 25, 2024, shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) experienced a significant gap up in trading. The stock closed the previous day at $3.11 but opened at $3.20, indicating a positive shift in investor sentiment. By the end of trading, shares last changed hands at $3.23 with a substantial trading volume of 15,323,596 shares.

Wall Street Analyst Commentary

Recent comments from analysts regarding BigBear.ai have been largely positive. HC Wainwright reaffirmed a “buy” rating on the stock and set a price target of $3.00 in a report dated November 6, while Cantor Fitzgerald also maintained an “overweight” rating with a higher price target of $3.50 as of the same date. Such endorsements from market analysts are often seen as indicators of potential growth for the company.

Performance Insights of BigBear.ai Stock

Currently, BigBear.ai has a current ratio of 2.06 and a quick ratio of 2.06, which suggests a strong liquidity position. However, its debt-to-equity ratio stands at 2.08. The market capitalization of the company is approximately $934.69 million, with a price-to-earnings (PE) ratio of -4.10, indicating that the company is currently operating at a loss. The stock has a beta of 3.58, suggesting high volatility compared to the market. Over the last 50 days, the average price of the stock has been $2.24, while the 200-day moving average is $1.74.

On November 5, BigBear.ai reported its latest quarterly earnings. The company announced earnings of ($0.05) per share, which was better than analysts' expectations of ($0.07) per share. During this period, the company generated revenue of $41.51 million, falling short of the expected $45.04 million. Despite these challenges, revenue was up 22.1% compared to the previous year's quarter. For the current year, analysts project that BigBear.ai will post an earnings per share of -0.28.

Insider Activity

In related news, on October 15, a director of the company, Bbai Ultimate Holdings, LLC, sold 572,817 shares at an average price of $1.78, totaling approximately $1,019,614.26. Post-sale, the director's ownership reduced by 0.40%, leaving them with 143,713,297 shares valued around $255.81 million. Notably, corporate insiders currently hold about 1.40% of the company’s stock.

Institutional Investment Trends

Recently, institutional investors have shown increased interest in BigBear.ai. Barclays PLC grew its position in the stock by an impressive 310.3% in the third quarter, acquiring an additional 107,214 shares to reach a total of 141,766 shares valued at $208,000. Similarly, Geode Capital Management LLC increased its holdings by 28.6%, now owning 2,158,438 shares worth approximately $3.15 million. Other firms, such as XTX Topco Ltd and State Street Corp, also added to their positions. Currently, 7.55% of the stock is owned by institutional investors and hedge funds, reflecting growing institutional interest.

About BigBear.ai

BigBear.ai Holdings, Inc. specializes in artificial intelligence-powered decision intelligence solutions for diverse applications, including national security, supply chain management, and digital identity solutions. The firm offers a comprehensive suite of services, including data ingestion, processing, and predictive analytics, aimed at enhancing operational decisions for organizations.