C3.ai (NYSE:AI) Announces Quarterly Earnings Results, Misses Expectations By $0.11 EPS

C3.ai (NYSE:AI) posted its earnings results on Wednesday. The company reported ($0.40) EPS for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.11), FiscalAI reports. C3.ai had a negative net margin of 108.06% and a negative return on equity of 46.51%. The company had revenue of $53.26 million during the quarter, compared to analyst estimates of $75.91 million.

C3.ai Price Performance

Shares of AI stock traded up $0.20 during midday trading on Wednesday, hitting $10.32. The company had a trading volume of 8,768,487 shares, compared to its average volume of 6,868,405. The stock has a market cap of $1.45 billion, a price-to-earnings ratio of -3.64 and a beta of 1.98. The company’s 50 day simple moving average is $12.54 and its 200 day simple moving average is $15.18. C3.ai has a 52-week low of $9.53 and a 52-week high of $30.24.

Analyst Ratings Changes

Several research analysts recently commented on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of C3.ai in a research note on Wednesday, January 21st. DA Davidson reissued an “underperform” rating and set a $13.00 price objective on shares of C3.ai in a research report on Thursday, December 4th. Canaccord Genuity Group restated a “hold” rating and set a $16.00 target price on shares of C3.ai in a research note on Thursday, December 4th. Needham & Company LLC reiterated a “hold” rating on shares of C3.ai in a research note on Thursday, December 4th. Finally, Bank of America set a $10.00 price target on shares of C3.ai in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, six have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat, C3.ai presently has an average rating of “Reduce” and an average target price of $21.00.

Insider Buying and Selling

In other news, CFO Hitesh Lath sold 15,042 shares of the firm’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $14.38, for a total value of $216,303.96. Following the completion of the sale, the chief financial officer owned 223,120 shares in the company, valued at approximately $3,208,465.60. This trade represents a 6.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Stephen Bradley Ehikian sold 234,918 shares of the business’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $13.56, for a total transaction of $3,185,488.08. Following the transaction, the chief executive officer owned 924,074 shares in the company, valued at approximately $12,530,443.44. This trade represents a 20.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,884,304 shares of company stock valued at $24,970,674 over the last three months. 26.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On C3.ai

A number of hedge funds and other institutional investors have recently modified their holdings of AI. Dimensional Fund Advisors LP boosted its position in C3.ai by 77.1% during the third quarter. Dimensional Fund Advisors LP now owns 1,804,188 shares of the company’s stock worth $31,284,000 after purchasing an additional 785,508 shares in the last quarter. Two Sigma Investments LP acquired a new position in shares of C3.ai during the 3rd quarter worth $13,379,000. Voloridge Investment Management LLC purchased a new stake in shares of C3.ai in the 4th quarter worth about $9,183,000. Federated Hermes Inc. grew its stake in C3.ai by 93,578.8% in the 4th quarter. Federated Hermes Inc. now owns 675,424 shares of the company’s stock valued at $9,105,000 after acquiring an additional 674,703 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in C3.ai by 94.5% during the 4th quarter. Marshall Wace LLP now owns 1,015,709 shares of the company’s stock valued at $13,692,000 after acquiring an additional 493,515 shares in the last quarter. 38.96% of the stock is currently owned by institutional investors and hedge funds.

About C3.ai

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company’s core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.