Why Is BBAI Stock Falling Today?

BigBear.ai Holdings Inc. (BBAI) shares fell more than 2% in Wednesday’s opening trade, a day after surging by more than 15% after a disclosure about a Congressional trade.

BBAI stock fell nearly 6% in Wednesday morning’s trade before making a partial recovery at the time of writing. Retail sentiment on Stocktwits around the company trended in the ‘extremely bullish’ territory.

Representative Lisa McClain (R-Mich.) made a disclosure regarding the purchase of BBAI stock, worth between $15,000 and $50,000, as part of a 401 (k) account held with Charles Schwab. Retail chatter on Stocktwits about the company increased by more than 170% over the last 24 hours, while the sentiment trended slightly lower after the initial optimism about the stock subsided.

While McClain’s trade was done on August 7, her disclosure also included several other transactions. Her trade was made days before BigBear.ai announced its second-quarter (Q2) results on August 11.

In its Q2 results announcement, BigBear.ai lowered its full-year guidance due to disruptions caused by the Department of Government Efficiency’s efforts. “While we are very optimistic with these significant investments and growth opportunities, we have also seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the U.S. Army,” said Kevin McAleenan, CEO of BigBear.ai.

The Virginia-headquartered company provides artificial intelligence-powered decision intelligence solutions for defense, manufacturing, and warehouse operations, healthcare, and life sciences.

BBAI stock is up 34% year-to-date and 273% in the past 12 months.

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