TLDR
- BigBear.ai stock jumped 16% Thursday with no major company news, riding broader market momentum
- The stock has gained 224% over the last three months and 82% year-to-date
- Technical indicators including MACD and ROC signal “Strong Buy” despite recent gains
- Palantir hitting new highs may be boosting the smaller defense AI player’s share price
- Company now valued at $2.4 billion market cap, trading at 14 times expected sales
BigBear.ai stock climbed 16% Thursday as investors continued their bullish run on defense artificial intelligence companies. The stock opened strong and maintained double-digit gains throughout the trading session.
The company saw no major business announcements to drive the rally. Instead, the stock benefited from broader market momentum as the S&P 500 gained 0.5% and the Nasdaq rose 0.7%.
Palantir’s new record high likely provided additional support for BigBear.ai’s share price. The two companies often move in tandem as investors view both as key players in the defense AI space.
Three-Month Rally Continues
BigBear.ai has experienced a remarkable run over the past quarter. The stock has gained 224% in the last three months alone, transforming from a small-cap play into a $2.4 billion company.
Year-to-date performance shows similar strength. The stock has climbed 82% since January, far outpacing broader market indices.
Trading volume reached 907,409 shares Thursday, well below the stock’s average daily volume of 128 million shares. The lower volume suggests the gains came from existing momentum rather than new investor interest.
The stock’s 52-week range now spans from $1.17 to $10.36. Thursday’s high of $8.38 approached the upper end of this range before settling at $8.26.
Technical Indicators Support Further Gains
Despite the massive run-up, technical analysis suggests more upside potential. The Moving Average Convergence Divergence indicator currently signals a buy, indicating continued momentum.
The stock’s 50-day Exponential Moving Average sits at $5.21, well below the current price of $8.13. This gap typically indicates bullish momentum in technical analysis.
Rate of Change measurements show even stronger signals. The ROC indicator reads 48.02, well above the zero threshold that confirms an uptrend.
The 20-day EMA also supports the upward trend. Short-term moving averages often provide clearer signals for momentum trades.
Analyst Views Mixed
Wall Street analysts show mixed opinions on the stock’s current valuation. The consensus rating stands at Moderate Buy based on two Buy ratings and two Hold ratings from the last three months.
However, the average price target of $5.83 implies 28% downside from current levels. This disconnect suggests analysts view the recent gains as potentially excessive.
The company trades at approximately 14 times this year’s expected sales. This valuation multiple reflects investor optimism about future growth prospects.
BigBear.ai’s gross margin of 28.54% provides some fundamental support for the premium valuation. The company has secured several key contracts, including deals with the U.S. Department of Defense.
The stock’s day range Thursday stretched from $7.25 to $8.38, showing continued volatility that has characterized the recent rally.
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