Sign InC3.ai Stock Analysis: Recent Insider Selling Raises Concerns, Hold Recommendation
Summary
On July 13, 2023, C3.ai's stock closed at $39.65 with a decline of 1.42%, and the next trading day, the stock may experience downward pressure due to recent insider selling, making a 'Hold' recommendation for potential investors to consider profitability struggles and downside risks before making an investment decision.
Overview
C3.ai, Inc., with the ticker symbol AI, is a notable player in the artificial intelligence industry. On the last trading day, July 13, 2023, the stock closed at $39.65, marking a decline of 1.42% compared to the prior trade. The last trading day saw the shares fluctuating between a low of $39.55 and a high of $41.67. In the past year, the company witnessed its shares hitting a low of $10.16 and a high of $48.87.
The company boasts a market cap of $4.58 billion, and the volume of traded shares stands at approximately 19.33 million, less than its average volume of 27.87 million. The share performance indicator RSI14 is 56, suggesting that the stock is neither oversold nor overbought. The company's 50-day moving average comes in at $32.25, and the 200-day moving average registers at $20.80.
Financial Ratios and Metrics
According to the data, C3.ai's EPS is listed as -$2.41, with a negative PE ratio of -16.45, implying that the company is not generating sufficient profit. With about 115.61 million shares outstanding, it's critical to note the impact these values will have on the stock's future performance.
Bullish and Bearish Indicators
The stock's MACD (3-month) is -0.59 and the Discounted Cash Flow (DCF) value is calculated as $42.24, suggesting that the stock is currently underpriced. However, the overall consensus target is at $22.01, median target on $19.53, considerably lower than the current trading price. The high and low targets are set at $31 and $13 respectively. These figures indicate a generally bearish outlook for the stock.
News Impact and Future Predictions
Recent news indicates heightened interest in C3.ai from investors seeking exposure in the artificial intelligence sector. However, a recent report of substantial stock sales by one of the company's directors and several executives last month might raise concerns among potential investors.
Given these factors, on July 14, 2023, the next trading day, the stock price might experience some downward pressure due to the recent insider selling. For the coming week, the stock will likely hover around the analysts' median target of $19.53.
Conclusion - Hold
Considering all the presented elements, the recommendation for C3.ai is a 'Hold'. The company seems to be struggling with profitability, which could impact future performance. Additionally, the divergence between the current price and analyst targets suggests downside risks. Over the coming week, potential investors are advised to keep an eye on the stock and consider these aspects before making their investment decision.
