C3.ai (NYSE:AI) Stock Price Down 4.5% – Here’s Why

C3.ai, Inc. (NYSE:AI)’s stock price traded down 4.5% on Wednesday . The stock traded as low as $10.52 and last traded at $10.4350. 1,418,434 shares changed hands during trading, a decline of 78% from the average session volume of 6,437,732 shares. The stock had previously closed at $10.93.

Key C3.ai News

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: Shares were lifted by a broader rally in AI and software names after falling Treasury yields and easing geopolitical risk improved valuation support for long-duration growth stocks. C3.ai and Dynatrace Shares Are Soaring, What You Need To Know
• Positive Sentiment: Investor commentary highlighted C3.ai as a Q1 earnings outperformer within the data infrastructure group, reinforcing the idea that the company can outperform when results show improvement. Q1 Earnings Outperformers: C3.ai (NYSE:AI) And The Rest Of The Data Infrastructure Stocks
• Neutral Sentiment: Broad AI industry headlines continue to support the long-term theme around enterprise adoption, data foundations, and AI-related productivity gains, but they do not directly change C3.ai’s near-term fundamentals.
• Negative Sentiment: Recent insider selling by CEO Thomas Siebel may weigh on sentiment, even though the trades were filed under a pre-arranged 10b5-1 plan and tied to tax withholding on vested equity awards. C3.ai (NYSE:AI) CEO Thomas Siebel Sells 23,570 Shares
• Negative Sentiment: Analyst sentiment remains mixed to negative overall, with a consensus rating of “Reduce,” which suggests Wall Street is still skeptical about the stock’s upside from current levels.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Citizens Jmp restated a “market perform” rating on shares of C3.ai in a report on Thursday, June 4th. KeyCorp restated an “underweight” rating on shares of C3.ai in a report on Thursday, June 4th. Wedbush restated an “outperform” rating and set a $15.00 price target on shares of C3.ai in a report on Thursday, June 4th. Canaccord Genuity Group boosted their price target on C3.ai from $8.00 to $10.00 and gave the stock a “hold” rating in a report on Thursday, June 4th. Finally, Weiss Ratings upgraded C3.ai from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, C3.ai currently has an average rating of “Reduce” and an average price target of $12.92.

C3.ai Stock Down 3.6%

The stock has a 50 day moving average of $9.55 and a 200 day moving average of $10.98. The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of -3.15 and a beta of 2.04.

C3.ai (NYSE:AI) last posted its quarterly earnings data on Wednesday, June 3rd. The company reported ($0.33) EPS for the quarter, topping analysts’ consensus estimates of ($0.38) by $0.05. The company had revenue of $51.60 million for the quarter, compared to analyst estimates of $51.60 million. C3.ai had a negative return on equity of 60.20% and a negative net margin of 187.95%.The firm’s quarterly revenue was down 52.5% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.16) earnings per share. As a group, sell-side analysts anticipate that C3.ai, Inc. will post -2.26 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Thomas M. Siebel sold 472,005 shares of C3.ai stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $11.11, for a total value of $5,243,975.55. Following the transaction, the chief executive officer directly owned 722,362 shares of the company’s stock, valued at $8,025,441.82. The trade was a 39.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Stephen Bradley Ehikian sold 52,194 shares of the business’s stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $8.22, for a total value of $429,034.68. Following the completion of the transaction, the chief executive officer directly owned 721,485 shares in the company, valued at approximately $5,930,606.70. This trade represents a 6.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,565,434 shares of company stock worth $14,684,917. 26.50% of the stock is owned by insiders.

Hedge Funds Weigh In On C3.ai

Several institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC lifted its stake in C3.ai by 48.7% in the first quarter. NewEdge Advisors LLC now owns 2,442 shares of the company’s stock valued at $51,000 after buying an additional 800 shares during the period. Parallel Advisors LLC lifted its stake in C3.ai by 76.4% in the third quarter. Parallel Advisors LLC now owns 1,849 shares of the company’s stock valued at $32,000 after buying an additional 801 shares during the period. BOKF NA lifted its stake in C3.ai by 20.7% in the third quarter. BOKF NA now owns 4,709 shares of the company’s stock valued at $82,000 after buying an additional 809 shares during the period. Farther Finance Advisors LLC lifted its stake in C3.ai by 66.1% in the fourth quarter. Farther Finance Advisors LLC now owns 2,141 shares of the company’s stock valued at $29,000 after buying an additional 852 shares during the period. Finally, Clearstead Advisors LLC lifted its stake in C3.ai by 58.0% in the third quarter. Clearstead Advisors LLC now owns 2,350 shares of the company’s stock valued at $41,000 after buying an additional 863 shares during the period. 38.96% of the stock is owned by institutional investors and hedge funds.

C3.ai Company Profile

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company’s core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.