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Thomas Siebel, the CEO of C3.ai, Inc. (NYSE:AI), recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. On February 11 and 12, Siebel disposed of 651,123 shares of C3.ai's Class A common stock, generating a total of approximately $21.47 million. The shares were sold at prices ranging from $32.22 to $34.37. The transaction comes as C3.ai, currently valued at $4.23 billion, has seen its stock surge over 31% in the past six months, according to InvestingPro data.
In addition to these sales, Siebel exercised options to acquire 133,000 shares at a price of $1.86 per share, amounting to a total cost of $247,380. Following these transactions, Siebel maintains direct ownership of 1,237,267 shares in the company.
These transactions were conducted as part of a pre-established Rule 10b5-1 trading plan, which allows insiders to sell their stock at predetermined times and quantities, helping to avoid any allegations of insider trading.
C3.ai, headquartered in Redwood (NYSE:RWT) City, California, is known for its software solutions that enable organizations to develop and deploy AI applications. The company continues to be a key player in the AI industry, with its shares traded on the New York Stock Exchange under the ticker symbol AI. Recent InvestingPro data shows the company maintaining strong revenue growth of 21.73% and a healthy liquidity position with a current ratio of 7.52, though it remains in investment mode with negative earnings per share of $2.21.
In other recent news, C3.ai has experienced a flurry of developments. The company saw its shares rise along with other AI companies like SES AI and BigBear.ai following a positive revenue outlook from sector peer Palantir (NASDAQ:PLTR). In contrast, KeyBanc Capital Markets downgraded C3.ai from Sector Weight to Underweight due to concerns about the company's valuation and growth prospects, including potential risks associated with its partnerships.
Additionally, C3.ai has expanded its partnership with Collins Aerospace to develop AI-driven solutions for the defense and intelligence sectors. The collaboration aims to enhance operational efficiency and decision-making capabilities within national security.
Canaccord Genuity updated its outlook on C3.ai by increasing the price target to $40 from the previous $23 while maintaining a Hold rating on the stock. The firm acknowledged the company's impressive streak of seven consecutive quarters of accelerating growth. However, the same optimism was not extended towards profitability, as the lowered FY25 profit guidance suggests margins around negative 31% at the midpoint.
Conversely, JPMorgan downgraded C3.ai to Underweight due to concerns over the company's performance, strategic partnerships, and high costs associated with growth. The firm set a price target of $28.00. These are among the recent developments concerning C3.ai.
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