BigBear.ai (BBAI) Stock Is Soaring This Week: What's Going On?

Shares of BigBear.ai Holdings Inc BBAI are continuing their volatile surge Thursday, propelled by a potent mix of new defense contracts, a favorable analyst rating and market pressure from high short interest.

What To Know: The artificial intelligence firm this week announced its successful use of its VANE platform in Project Convergence – Capstone 5, a multinational defense experiment that showcased the technology’s ability to give forces situational awareness. Following this, HC Wainwright & Co. reiterated a Buy rating on the stock and raised its price target from $6 to $9.

Analyst Scott Buck cited the company's strong business momentum, a growing backlog valued at $384.9 million and positive trends for AI in the defense sector.

Fueling the stock’s sharp rise is a significant short interest, with about 35% of the company’s available shares being sold short. This has made BBAI a candidate for a short squeeze, where rising prices force short sellers to buy back shares, further accelerating the stock’s upward climb.

Other recent developments include the deployment of its biometric passenger software in major U.S. airports and a strategic partnership to expand into the United Arab Emirates. However, some investors could remain cautious, recalling a similar squeeze in February that was followed by a 60% crash in the stock's value.

Benzinga Edge Rankings: According to Benzinga’s Edge stock rankings, BigBear.ai shows exceptional price momentum with a score of 98.78, reflecting the stock’s powerful recent trend.

However, the company scores very low on value with a rating of 15.84, suggesting it may be considered overvalued at its current price. Growth and quality metrics were not available.

Price Action: According to data from Benzinga Pro, BBAI shares are trading higher by 1.73% to $7.699 Thursday morning. Shares are now higher by 106% over the trailing month. BBAI has a 52-week high of $10.36 and a 52-week low of $1.16.

Read Also: Stock Of The Day: Short Squeeze In BigBear.ai?

How To Buy BBAI Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in BigBear.ai’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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