C3.ai (NYSE:AI) Shares Gap Up Following Analyst Upgrade

C3.ai, Inc. (NYSE:AI) gapped up prior to trading on Monday after Northland Securities upgraded the stock from a market perform rating to an outperform rating. The stock had previously closed at $11.53, but opened at $12.30. Northland Securities now has a $16.00 price target on the stock, up from their previous price target of $10.00. C3.ai shares last traded at $12.1790, with a volume of 3,511,581 shares changing hands.

A number of other analysts have also recently issued reports on AI. Citizens Jmp reiterated a “market perform” rating on shares of C3.ai in a research note on Tuesday, September 29th. Wall Street Zen upgraded shares of C3.ai from a “sell” rating to a “hold” rating in a research note on Sunday. Canaccord Genuity Group restated a “hold” rating and set a $10.00 price target on shares of C3.ai in a report on Thursday, September 3rd. Weiss Ratings raised shares of C3.ai from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, August 4th. Finally, DA Davidson reaffirmed an “underperform” rating and issued a $7.00 price objective on shares of C3.ai in a research note on Tuesday, September 1st. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and seven have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $9.36.

Insider Activity

In related news, CEO Thomas M. Siebel sold 162,247 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $10.54, for a total value of $1,710,083.38. Following the transaction, the chief executive officer directly owned 722,362 shares of the company’s stock, valued at approximately $7,613,695.48. This trade represents a 18.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Hitesh Lath sold 21,077 shares of the business’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $10.48, for a total value of $220,886.96. Following the completion of the sale, the chief financial officer owned 371,036 shares of the company’s stock, valued at approximately $3,888,457.28. This trade represents a 5.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 1,117,809 shares of company stock valued at $11,724,230. 19.80% of the stock is currently owned by corporate insiders.

More C3.ai News

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

• Positive Sentiment: Northland upgrades C3.ai to Outperform: Northland Securities raised its rating from Market Perform to Outperform and increased its price target from $10 to $16. Analyst Mike Latimore views the enterprise AI platform launch as a potential “new growth engine,” while easier comparisons could improve the company’s growth outlook. C3.ai rallies after Northland upgrades stock on enterprise AI platform launch
• Positive Sentiment: Higher valuation expectations: Northland’s $16 target implies meaningful upside from the stock’s recent trading level and has helped attract buying interest across enterprise software and AI stocks. The firm estimates a quarterly loss of $0.42 per share and expects C3.ai to remain unprofitable, but still maintains an Outperform rating. Northland Securities Upgrades C3.ai to Strong-Buy
• Neutral Sentiment: Increased investor attention: C3.ai has recently ranked among the most-watched stocks on Zacks, which may boost near-term trading activity. However, the coverage does not provide a new fundamental estimate or company-specific catalyst. C3.ai is Attracting Investor Attention
• Negative Sentiment: UBS remains cautious: UBS said C3.ai needs several more quarters to stabilize its business, tempering the optimism from Northland’s upgrade. The caution highlights execution risk, especially as the company continues to report substantial losses and declining revenue. C3.ai Needs More Quarters to Stabilize, UBS Says

Hedge Funds Weigh In On C3.ai

A number of institutional investors have recently modified their holdings of AI. Royal Bank of Canada boosted its holdings in C3.ai by 418.7% during the first quarter. Royal Bank of Canada now owns 177,527 shares of the company’s stock valued at $1,495,000 after acquiring an additional 143,303 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of C3.ai in the first quarter valued at about $934,000. Bank of America Corp DE increased its stake in shares of C3.ai by 55.1% in the first quarter. Bank of America Corp DE now owns 3,282,183 shares of the company’s stock worth $27,636,000 after purchasing an additional 1,166,302 shares during the period. First Trust Advisors LP increased its stake in shares of C3.ai by 67.3% in the first quarter. First Trust Advisors LP now owns 1,215,341 shares of the company’s stock worth $10,233,000 after purchasing an additional 488,710 shares during the period. Finally, Edgestream Partners L.P. increased its stake in shares of C3.ai by 247.5% in the first quarter. Edgestream Partners L.P. now owns 658,573 shares of the company’s stock worth $5,545,000 after purchasing an additional 469,057 shares during the period. Institutional investors own 38.96% of the company’s stock.

C3.ai Stock Performance

The firm has a 50-day moving average of $10.58 and a two-hundred day moving average of $9.75.

C3.ai (NYSE:AI) last announced its earnings results on Wednesday, September 2nd. The company reported ($0.20) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.06. The firm had revenue of $52.38 million during the quarter, compared to the consensus estimate of $52.06 million. C3.ai had a negative return on equity of 61.25% and a negative net margin of 192.10%. The firm’s revenue for the quarter was down 25.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.37) EPS. Analysts forecast that C3.ai, Inc. will post -2.21 earnings per share for the current fiscal year.

C3.ai Company Profile

C3.ai, Inc is an enterprise artificial intelligence software company that develops applications and tools designed to help organizations use AI and machine learning to analyze data, automate processes and support business decision-making. The company’s offerings are intended for large commercial enterprises, government agencies and other organizations managing complex operational and data environments.

Its product portfolio includes the C3 AI Platform, which provides capabilities for developing, deploying and operating AI applications, as well as prebuilt enterprise applications.