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Shares of AI have declined 74.1% in price over the past year and 75.8% year-to-date. Over the past month, the stock has slumped 27% to close yesterday’s trading session at $32.35. In November, a large insider sale amid other factors helped trigger the broader sell-off. CEO Thomas Siebel sold 615,488 shares at prices ranging from $46.96 to $51.20, with his total transaction amounting to $29,762,880.
Despite beating consensus estimates in its last reported quarter and raising its guidance, the stock sold off 17% on the release. And the company’s bottom line remains bleak. Its non-GAAP net loss per share came in at $0.23, versus analysts’ expectations of $0.28. The stock hit its 52-week low of $27.52 on December 2 after the company posted its earnings report. Following that, Bank of America (NYSE:BAC) downgraded the company to Underperform, citing disappointing subscription revenues and a sequential decline in Remaining Performance Obligations. Wedbush lowered its price target to $45 from $70, while J.P. Morgan analyst Mark Murphy slashed his target price to $43 from $53, keeping an Underweight rating. According to some U.S. software analysts, the company’s losses could widen further, and it might take some time for the company to hit its breakeven point and improve margins.
