C3.ai (NYSE:AI) Shares Down 8.9% – Here’s Why

C3.ai, Inc. (NYSE:AI)’s share price traded down 8.9% during mid-day trading on Friday. The stock traded as low as $11.07 and last traded at $11.0750. 4,577,410 shares changed hands during mid-day trading, a decline of 23% from the average daily volume of 5,937,475 shares. The stock had previously closed at $12.16.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AI. Canaccord Genuity Group reaffirmed a “hold” rating and set a $10.00 target price on shares of C3.ai in a research note on Thursday, September 3rd. Northland Securities set a $16.00 target price on shares of C3.ai and gave the company an “outperform” rating in a report on Monday. Weiss Ratings raised C3.ai from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, August 4th. Citizens Jmp restated a “market perform” rating on shares of C3.ai in a research note on Tuesday, September 29th. Finally, UBS Group reaffirmed an “underperform” rating on shares of C3.ai in a research report on Tuesday, September 1st. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat.com, C3.ai currently has a consensus rating of “Reduce” and a consensus target price of $9.36.

C3.ai Trading Down 8.9%

The firm has a market capitalization of $1.78 billion, a PE ratio of -3.58 and a beta of 2.11. The business’s 50 day simple moving average is $10.66 and its two-hundred day simple moving average is $9.80.

C3.ai (NYSE:AI) last released its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.20) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.06. The business 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 business’s quarterly revenue was down 25.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.37) EPS. As a group, equities research analysts anticipate that C3.ai, Inc. will post -2.21 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Hitesh Lath sold 20,000 shares of the business’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $12.37, for a total value of $247,400.00. Following the transaction, the chief financial officer owned 305,250 shares of the company’s stock, valued at approximately $3,775,942.50. The trade was a 6.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Thomas Siebel sold 435,363 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $11.82, for a total transaction of $5,145,990.66. Following the transaction, the chief executive officer directly owned 722,362 shares of the company’s stock, valued at $8,538,318.84. This trade represents a 37.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,573,172 shares of company stock valued at $17,117,621. Insiders own 19.80% of the company’s stock.

Hedge Funds Weigh In On C3.ai

Several hedge funds have recently added to or reduced their stakes in the company. Western Wealth Management LLC purchased a new stake in shares of C3.ai in the first quarter worth approximately $26,000. AdvisorNet Financial Inc bought a new stake in C3.ai during the first quarter valued at about $34,000. CoreCap Advisors LLC boosted its holdings in shares of C3.ai by 34.0% in the 2nd quarter. CoreCap Advisors LLC now owns 6,145 shares of the company’s stock valued at $56,000 after buying an additional 1,560 shares in the last quarter. Versant Capital Management Inc grew its holdings in C3.ai by 1,510.1% in the second quarter. Versant Capital Management Inc now owns 6,859 shares of the company’s stock worth $62,000 after purchasing an additional 6,433 shares during the last quarter. Finally, Nykredit A S acquired a new position in C3.ai during the 2nd quarter valued at about $84,000. 38.96% of the stock is currently owned by institutional investors.

About C3.ai

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.