What's Going On With BigBear.ai Stock Wednesday?

Shares of BigBear.ai Inc BBAI are on the move Wednesday after the company announced it received a contract award as a subcontractor to Concept Solutions.

What To Know: After the market close on Tuesday, BigBear.ai announced that it will work with Concept Solutions to support a Federal Aviation Administration (FAA) Information Technology Innovative Procurement Strategic Sourcing (ITIPSS) contract. 

Concept Solutions was one of 14 companies selected under the multiple-award contract that enables the FAA to acquire a full range of IT capabilities, solutions and emerging technologies. BigBear.ai said it will help manage information systems, provide support for various programs, assist in evolving existing programs and implement innovative solutions aligned with the FAA's strategic goals. The contract has a $2.4 billion shared ceiling over a 10-year period.

"Through this contract, BigBear.ai brings to FAA and the Concept Solutions team a long-term sustainment partner, far beyond initial implementation of off-the-shelf technology," said Robert Wedertz, senior vice president, Federal at BigBear.ai. 

See Also: Target Q2 Earnings: Revenue And Profit Beat, Digital Sales Boost, Annual Profit Outlook Hiked

BBAI Stock Forecast 2030

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return. For BigBear.ai, over the past five years, its annualized stock performance is -32.97%.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

BBAI Price Action: BigBear.ai shares were up 36.1% at $1.81 at the time of writing Wednesday, according to Benzinga Pro.

Photo: 3844328 from Pixabay.