C3.ai (NYSE:AI) Raised to “Outperform” at Northland Securities

C3.ai (NYSE:AI) was upgraded by investment analysts at Northland Securities from a “market perform” rating to an “outperform” rating in a research note issued to investors on Monday, MarketBeat Ratings reports. The firm presently has a $16.00 price objective on the stock, up from their prior price objective of $10.00. Northland Securities’ price objective points to a potential upside of 33.60% from the company’s previous close. Northland Securities also issued estimates for C3.ai’s Q4 2028 earnings at ($0.42) EPS.

Several other brokerages have also recently commented on AI. Citigroup reissued a “market perform” rating on shares of C3.ai in a research report on Thursday, September 3rd. UBS Group reaffirmed an “underperform” rating on shares of C3.ai in a research report on Tuesday, September 1st. Wall Street Zen upgraded C3.ai from a “sell” rating to a “hold” rating in a research note on Sunday. Canaccord Genuity Group reiterated a “hold” rating and set a $10.00 price objective on shares of C3.ai in a research note on Thursday, September 3rd. Finally, DA Davidson reissued an “underperform” rating and issued a $7.00 price objective on shares of C3.ai in a report on Tuesday, September 1st. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat, C3.ai currently has an average rating of “Reduce” and an average price target of $9.36.

C3.ai Stock Performance

C3.ai stock opened at $11.98 on Monday. The firm has a 50-day moving average of $10.58 and a 200-day moving average of $9.75. C3.ai has a one year low of $7.68 and a one year high of $19.80.

C3.ai (NYSE:AI) last announced its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.20) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.06. C3.ai had a negative return on equity of 61.25% and a negative net margin of 192.10%. The company had revenue of $52.38 million during the quarter, compared to analysts’ expectations of $52.06 million. During the same quarter last year, the company earned ($0.37) EPS. C3.ai’s revenue for the quarter was down 25.4% compared to the same quarter last year. Analysts forecast that C3.ai will post -2.21 EPS for the current year.

Insider Activity

In related news, CFO Hitesh Lath sold 21,077 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $10.48, for a total value of $220,886.96. Following the completion of the sale, the chief financial officer directly owned 371,036 shares in the company, valued at approximately $3,888,457.28. This trade represents a 5.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Thomas M. Siebel sold 453,314 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $10.51, for a total transaction of $4,764,330.14. Following the completion of the sale, the chief executive officer owned 722,362 shares of the company’s stock, valued at $7,592,024.62. This trade represents a 38.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,117,809 shares of company stock worth $11,724,230 over the last 90 days. 19.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On C3.ai

A number of institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC bought a new stake in C3.ai in the second quarter valued at approximately $106,000. Engineers Gate Manager LP acquired a new stake in shares of C3.ai in the second quarter valued at approximately $2,855,000. Allworth Financial LP lifted its position in shares of C3.ai by 13.6% in the second quarter. Allworth Financial LP now owns 26,660 shares of the company’s stock valued at $242,000 after buying an additional 3,185 shares during the last quarter. Arizona State Retirement System boosted its stake in shares of C3.ai by 3.7% during the 2nd quarter. Arizona State Retirement System now owns 37,168 shares of the company’s stock worth $338,000 after acquiring an additional 1,310 shares during the period. Finally, Nykredit A S bought a new position in shares of C3.ai during the 2nd quarter worth approximately $84,000. Institutional investors and hedge funds own 38.96% of the company’s stock.

Key Stories Impacting C3.ai

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: Northland upgrades C3.ai to Outperform: Northland Securities raised its rating from Market Perform to Outperform and increased its price target from $10 to $16. Analyst Mike Latimore views the enterprise AI platform launch as a potential “new growth engine,” while easier comparisons could improve the company’s growth outlook. C3.ai rallies after Northland upgrades stock on enterprise AI platform launch
• Positive Sentiment: Higher valuation expectations: Northland’s $16 target implies meaningful upside from the stock’s recent trading level and has helped attract buying interest across enterprise software and AI stocks. The firm estimates a quarterly loss of $0.42 per share and expects C3.ai to remain unprofitable, but still maintains an Outperform rating. Northland Securities Upgrades C3.ai to Strong-Buy
• Neutral Sentiment: Increased investor attention: C3.ai has recently ranked among the most-watched stocks on Zacks, which may boost near-term trading activity. However, the coverage does not provide a new fundamental estimate or company-specific catalyst. C3.ai is Attracting Investor Attention
• Negative Sentiment: UBS remains cautious: UBS said C3.ai needs several more quarters to stabilize its business, tempering the optimism from Northland’s upgrade. The caution highlights execution risk, especially as the company continues to report substantial losses and declining revenue. C3.ai Needs More Quarters to Stabilize, UBS Says

C3.ai Company Profile

C3.ai, Inc is an enterprise artificial intelligence software company that develops applications and tools designed to help organizations use AI and machine learning to analyze data, automate processes and support business decision-making. The company’s offerings are intended for large commercial enterprises, government agencies and other organizations managing complex operational and data environments.

Its product portfolio includes the C3 AI Platform, which provides capabilities for developing, deploying and operating AI applications, as well as prebuilt enterprise applications.