Bigbear.ai holdings sees $17.7 million in stock sales by AE Industrial Partners

BigBear.ai Holdings, Inc. (NYSE:BBAI), currently valued at $882 million, recently witnessed significant stock sales involving its major stakeholders. According to an SEC filing, AE Industrial Partners, through its affiliated entities, sold a total of 5,336,945 shares of BigBear.ai common stock over two days, March 12 and 13. The transactions, conducted at prices ranging from $3.28 to $3.33 per share, amounted to approximately $17.7 million. InvestingPro analysis indicates the stock trades with notably high volatility, with a beta of 2.87.

These sales were carried out by AE Industrial Partners Fund II-B, LP, AE Industrial Partners Fund II-A, LP, and AE Industrial Partners Fund II, LP, among others, which are part of the AE Industrial Partners group. The shares were sold in multiple transactions, with the prices reflecting a weighted average. Following these transactions, the entities collectively hold 35,164,399 shares of BigBear.ai. With an overall Financial Health score rated as ’WEAK’ by InvestingPro, investors should closely monitor insider transactions. Get access to 8 additional exclusive ProTips and comprehensive insider trading analysis with InvestingPro.

The stock sales were documented in a Form 4 filing with the Securities and Exchange Commission, providing transparency to investors about the activities of major shareholders. The stock has shown significant momentum, posting a 107% return over the past six months, despite current challenges in meeting short-term obligations.

In other recent news, BigBear.ai has secured a $13.2 million contract from the U.S. Department of Defense to enhance its ORION Decision Support Platform. This contract aims to modernize the platform for improved scalability and analytical capabilities. The company’s recent financial performance revealed a fourth-quarter revenue of $43.8 million, which represented an 8% year-over-year increase but fell short of analyst expectations and company forecasts. BigBear.ai has provided guidance for 2025, projecting revenue between $160 million and $180 million, below the anticipated $193.9 million.

Cantor Fitzgerald and H.C. Wainwright both adjusted their price targets for BigBear.ai to $6.00, with the former maintaining an Overweight rating and the latter a Buy rating. Despite the earnings miss, BigBear.ai reported a significant backlog of $480 million, marking a 2.5 times year-over-year increase. The company also improved its gross margin to 37.4% in Q4 2024 from 32.1% in Q4 2023. BigBear.ai has taken steps to deleverage its balance sheet, reducing net debt significantly through warrant exercises and debt conversions. The company cautioned that potential U.S. government changes could impact its 2025 outlook.

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