TLDR
- BigBear.ai stock closed up 2.88% at $7.49 with trading volume of 152.6 million shares, exceeding its three-month average by 67%.
- The company announced a September partnership with SMX to enhance maritime domain awareness for U.S. and allied defense agencies.
- Analysts maintain a “Hold” consensus rating with an average target price of $6.00, below the current trading price.
- BigBear.ai reported Q2 revenue of $32.47 million, missing analyst expectations of $41.18 million, with revenue down 18.3% year-over-year.
- The company has a market cap of $3.27 billion with institutional ownership at just 7.55%, while the stock trades above both its 50-day and 200-day moving averages.
BigBear.ai Holdings closed Thursday at $7.49, gaining 2.88% in a session that saw the broader market pull back. The S&P 500 fell 0.28% while the Nasdaq also declined as investors shifted focus to smaller growth names in the defense technology sector.
Trading volume told an interesting story. The stock moved 152.6 million shares, about 67% above its three-month average of 91.3 million.
The company’s AI sector peers showed mixed performance. Palantir Technologies gained 1.04% to $185.47, while C3.ai dropped 1.10% to $18.92.
The recent momentum stems from September partnership announcements. The most recent came with SMX, focused on maritime domain awareness for U.S. and allied defense agencies.
These partnerships appear to be helping the stock recover from earlier setbacks. August earnings disappointed investors when revenue came in well below expectations.
Financial Performance
The August earnings report revealed challenges. BigBear.ai posted quarterly revenue of $32.47 million, missing analyst estimates of $41.18 million.
Revenue declined 18.3% compared to the same quarter last year. The company reported a loss of $0.06 per share, which actually beat analyst expectations of a $0.07 loss by a penny.
The company operates with a negative net margin of 269.28%. It also posted a negative return on equity of 48.11%.
Looking ahead, analysts forecast the company will post a loss of $0.28 per share for the full fiscal year. The company carries a debt-to-equity ratio of 0.42.
Current and quick ratios both sit at 1.91. Market capitalization stands at $3.27 billion.
The stock trades with a beta of 3.43, indicating high volatility relative to the broader market.
Analyst Views and Trading Activity
Wall Street analysts maintain a cautious stance. The consensus rating sits at “Hold” with an average price target of $6.00.
That target price sits below the current trading level. Weiss Ratings issued a “sell” rating on the stock Wednesday.
HC Wainwright lowered its price target from $9.00 to $8.00 in August while maintaining a “buy” rating. Two analysts rate the stock a buy, two assign hold ratings, and one recommends selling.
Technical indicators show the stock trading above key moving averages. The 50-day moving average sits at $6.12, while the 200-day moving average stands at $5.03.
Inside the company, CFO Sean Raymond Ricker sold 11,978 shares in late August at $5.35 per share. The transaction totaled $64,082 and reduced his stake by 3.88%.
Insiders own just 1.10% of company shares. Institutional ownership remains low at 7.55% of outstanding stock.
Goldman Sachs increased its position by 569% during the first quarter, adding nearly 2 million shares. The firm now holds 2,340,713 shares worth approximately $6.69 million.
Several other institutional investors adjusted their positions in recent months. Baird Financial Group took a new position worth $286,000, while McGuire Investment Group increased its holdings by 89%.
Swiss National Bank initiated a position worth $1.045 million in the first quarter. Kingswood Wealth Advisors grew its stake by 48.5% to 125,136 shares valued at $850,000.
