The growth track for C3.ai Inc. (AI) has changed recently

C3.ai Inc. (NYSE: AI) stock jumped 7.39% on Monday to $14.54 against a previous-day closing price of $13.54. With 3.45 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.77 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $14.55 whereas the lowest price it dropped to was $13.45. The 52-week range on AI shows that it touched its highest point at $27.62 and its lowest point at $10.16 during that stretch. It currently has a 1-year price target of $13.62.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AI was up-trending over the past week, with a rise of 14.94%, but this was up by 22.18% over a month. Three-month performance surged to 16.69% while six-month performance fell -21.41%. The stock lost -44.67% in the past year, while it has gained 29.94% so far this year. A look at the trailing 12-month EPS for AI yields -2.23 with Next year EPS estimates of -0.34. For the next quarter, that number is -0.22. This implies an EPS growth rate of -241.60% for this year and 54.10% for next year.

Float and Shares Shorts:

At present, 108.88 million AI shares are outstanding with a float of 90.86 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.23 million, which was 11.27% higher than short shares on Sep 14, 2022. In addition to Mr. Thomas M. Siebel as the firm’s Founder, CEO & Chairman, Mr. Edward Y. Abbo serves as its Pres & CTO.


Institutional Ownership:

Through their ownership of 46.91% of AI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 28.96% of AI, in contrast to 17.93% held by mutual funds. Shares owned by individuals account for 17.31%. As the largest shareholder in AI with 8.35% of the stake, The Vanguard Group, Inc. holds 8,910,856 shares worth 8,910,856. A second-largest stockholder of AI, BlackRock Fund Advisors, holds 4,858,943 shares, controlling over 4.55% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in AI, holding 2,963,700 shares or 2.78% stake. With a 2.69% stake in AI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,867,884 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.28% of AI stock, is the second-largest Mutual Fund holder. It holds 2,434,662 shares valued at 27.24 million. iShares Russell 2000 ETF holds 1.27% of the stake in AI, owning 1,355,413 shares worth 15.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AI since 11 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AI analysts setting a high price target of $19.00 and a low target of $11.00, the average target price over the next 12 months is $13.63. Based on these targets, AI could surge 30.67% to reach the target high and fall by -24.35% to reach the target low. Reaching the average price target will result in a decline of -6.26% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AI will report FY 2023 earnings on 06/01/2023. Analysts have provided yearly estimates in a range of -$0.69 being high and -$0.79 being low. For AI, this leads to a yearly average estimate of -$0.75. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. C3.ai Inc. surprised analysts by $0.05 when it reported -$0.11 EPS against a consensus estimate of -$0.16. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.21 and the low estimate is -$0.24. The average estimate for the next quarter is thus -$0.23.

Summary of Insider Activity:

Insiders traded AI stock several times over the past three months with 4 Buys and 10 Sells. In these transactions, 246,058 shares were bought while 147,524 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 37 over the past year. The total number of shares bought during that period was 1,022,892 while 563,248 shares were sold.

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