Sign InC3.ai Stock Analysis: Marginal Gain with Potential for Growth, Caution Advised
Summary
As of July 7, 2023, C3.ai's stock closed at $39.25 with marginal gains, fluctuating between a price low of $39.04 and a price high of $42.19, and despite having a large market capitalization and positive technical indicators, concerns are raised over the disconnect between the stock's performance and the company's financials, resulting in a lack of consensus among analysts for the future stock price prediction.
Summary of Fundamental and Technical Data
The company under analysis is C3.ai, Inc. (AI) trading on the NYSE. As per the last trading day's data from July 07, 2023, the company's stock closed at $39.25, showing a marginal gain of $0.17 or 0.44%.
The company's stock has fluctuated between a price low of $39.04 and a price high of $42.19 in recent times. Yet, the company's year record suggests a far wider spectrum where the stock reached a year high of $48.87 and a year low of $10.16.
C3.ai has a notably large market capitalization of approximately $4.40 billion, with around 112.11 million outstanding shares. The company's trading volume stands at 31.06 million, slightly exceeding the average volume of 27.69 million.
Analysis of the key technical indicators shows an RSI14 at 35, indicating neutral momentum. The 50-Day Moving Average is $30.43, well below the last close of $39.25. The 200-Day Moving Average is even lower at $20.26 suggesting a general upward trend. The MACD (3-month) is 1.12, also indicating bullishness.
However, the company does not seem to perform well in terms of earnings. The EPS is a negative value of -2.74 resulting in a PE ratio of -14.32 showing the company is currently not profitable.
News Impact Analysis
Based on the most recent news, AI stocks are popular in the investor community as seen by the strong surge of Nasdaq-100 in 2023. Moreover, C3.ai has been directly compared to Nvidia, a leader in the AI hardware market. Despite Nvidia’s dominance, C3.ai's cheaper valuation is recognized as presenting potential for future growth. However, some caution from investors is notable, with concerns raised over a perceived disconnect between the stock’s performance and the company’s financials.
Price Prediction and Final Evaluation
In terms of the upcoming price prediction, using the Company's discounted cash flow (DCF), the predicted price for the next trading day on July 10, 2023, is $41.84. However, there is a lack of consensus among analysts about the company's future stock price. The analyst target high is $31, low is $13, with a consensus of $22.01, all considerably below the DCF prediction.
Considering the firm’s considerable market value, the trading momentum suggested by the technical indicators and ongoing buzz in the sector, C3.ai stock can be considered a Hold for the upcoming week. The company has potential for growth as indicated by the upward trends but the non-consensus among analysts and concerns over the disconnect between company financials and the stock's performance suggest caution. Future news, trends in the AI sector, and the company’s earnings announcement on 08/29/2023 may also affect the stock performance.
