On June 4, 2023, the share price of C3.ai, Inc. (NYSE: AI) fell by 4.4% as a result of insider selling activity. The stock traded as low as $32.42 and last traded at $33.20, with 17,362,503 shares changing hands during trading. This represents a decline of 25% from the average session volume of 23,190,340 shares.
Director Stephen M. Ward Jr. was responsible for the insider selling activity which occurred on Tuesday, May 30th when he sold 120,000 shares of the firm’s stock at an average price of $42.09 per share for a total transaction amounting to $5,050,800.00. Following this sale, the director now owns 546,495 shares in the company valued at approximately $23,001,974.55.
Furthermore, CFO Juho Parkkinen sold 4,931 shares of C3.ai stock in a transaction that occurred on Thursday, March 16th for an average price of $21.42 per share and a total transaction amounting to $105,622.02. Following this sale he owns 342,888 shares in the company valued at $7,344,660.96.
The company has a market cap of $3.77 billion and a P/E ratio of -13.42 with beta of1 .48 while maintaining a50-day moving average price around$24 anda200-day moving average priceof$19.
Though several research analysts have recently commented on C3.ai’s shares; four have rated it as ‘sell’, six have rendered it ‘hold’ and only two analysts have given ita ‘buy’ rating with an average target price to be$23 on Bloomberg
C3.ai is a notable enterprise artificial intelligence software provider which gives itscustomers specific or application-specific turnkey AI solutions. The firm develops software-as-a-service applications to enhance client’s enterprise softwares.
The company’s earnings results for Q1 of 2023 showed that the company reported ($0.57) in earnings per share, which was an increase from the consensus estimate of ($0.69) by $0.12 and had a negative net margin of 100.77% and return on equity of28.01%. The report reveals that revenue for the quarter amounted to $66.67 million, beating analysts’ expectations of $63.89 million.
In conclusion, insider selling activity has affected C3.ai Inc.’s share price causing a decline in volume trading which has led to further scrutiny by investors and research analysts alike as they seek to discern whether this constitutes an indication of deeper issues within the firm or is merely a temporary blip caused by short-term circumstances.
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Institutional Investors Shift Holdings in AI Software Company C3.ai: Insights for Portfolio Management
As of June 4, 2023, hedge funds and other institutional investors have shuffled their holdings in the artificial intelligence software company, C3.ai. This movement has grabbed the attention of many market watchers, who eagerly analyze such shifts for clues on how to best allocate capital.
Of these changes in positions, Virtu Financial LLC is a new standout player with a $186,000 position acquisition in C3.ai. Meanwhile, Exchange Traded Concepts LLC increased its holdings by 17% during Q4 2022 and now possesses 20,980 shares currently valued at $235,000. Quantbot Technologies LP also joined the fray with a $515,000 investment towards the end of Q3 2022.
Tudor Investment Corp Et Al raised its position by 14.2% during Q3 2022 and now controls over eight hundred fifty-six thousand shares in the firm worth nearly $11 million dollars. Lastly, Asset Management One Co. Ltd. secured a new position with a $351,000 purchase in Q3 2022.
Collectively, this group of firms makes up just shy of half (41.97%) of C3.ai’s total stock ownership as it stands today.
This activity from institutional investors occurs with regularity amongst publicly traded enterprises as they seek to revamp portfolio components or replace underperforming firms within them.
Many factors drive these decisions: growth prospects and profitability are some common criteria utilized by such entities when assessing whether to buy sell or hold. These shifts signal optimism in an organization’s future results or financial well-being and provide valuable insights to smaller investors seeking guidance on how to manage their portfolios effectively.
As we see continued institutional investment reshaping firms’ ownership patterns like that seen with C3.ai recently – it remains critical for traders and analysts alike to continue monitoring these trends closely as possible leading indicators for determining future market moves.
