BigBear.ai Holdings Inc (NYSE:BBAI) shares are trading flat Monday morning as investors await the company’s second-quarter financial results, which are scheduled for release after the market closes. Here’s what investors need to know.
What To Know: The report is a critical event for the AI and analytics firm, following a period of volatility and speculation about a potential short squeeze dynamic, as highlighted in a recent Benzinga “Stock of the Day” feature.
The company is looking to rebound from a disappointing first quarter reported on May 1. In that report, BigBear.ai announced a loss of 25 cents per share, missing the analyst consensus estimate of a 6 cent loss. Revenue also came in below expectations at $34.76 million versus an estimated $36.26 million, causing shares to slide.
For the second quarter results due today, analysts are projecting a narrower loss of approximately 6 cents per share on revenue of $41.17 million. A strong performance relative to these estimates could provide a much-needed catalyst for the stock.
Wall Street analysts have shown some recent optimism despite the previous earnings miss. On July 1, HC Wainwright & Co. maintained its Buy rating on BBAI and increased its price target from $6 to $9, suggesting significant potential upside.
Investors will be watching to see if the second-quarter results can set a positive trajectory for the remainder of the year. With a significant 30.96% of its shares sold short, BigBear.ai has a high level of bearish sentiment from investors, though it would only take one day for those positions to be covered based on average trading volume.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which provide scores to assess a stock’s strength, BigBear.ai exhibits a profile of extremely high momentum paired with a low valuation score.
The stock’s Momentum score is an exceptional 98.60, reflecting its strong recent price action. This is further supported by positive indicators across its short, medium, and long-term price trends. In stark contrast, its Value score is a very low 16.41, suggesting that based on fundamental metrics, the stock is considered expensive.
This data collectively portrays BBAI as a classic momentum-driven stock that is trading at a premium, rather than a traditional value-oriented investment.
Price Action: According to data from Benzinga Pro, BBAI shares are trading yo 3.29% at $7.37. The stock has a 52-week high of $10.36 and a 52-week low of $1.20.
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How To Buy BBAI Stock
By now you're likely curious about how to participate in the market for BigBear.ai – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of BigBear.ai, which is trading at $7.37 as of publishing time, $100 would buy you 13.57 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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