Stock of the Day

September 20, 2021

C3.ai (AI)

$12.14
+$0.47 (+4.0%)
Market Cap: $1.88B

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

Today's Trend

C3.ai, Inc. (NYSE: AI) shares have increased as investors respond to a bullish analyst upgrade and signs of improving earnings performance. However, substantial insider selling and continued losses remain risks.

  • Northland Capital Markets upgraded C3.ai from “Market Perform” to “Outperform” and raised its price target to $16 from $10. The firm cited the potential of C3.ai’s enterprise AI platform launch, providing a more optimistic view of the company’s growth prospects. Northland upgrades C3.ai
  • Recent results have improved the investment narrative. C3.ai reported a smaller-than-expected quarterly loss of $0.20 per share versus the $0.26 consensus estimate, while revenue of $52.38 million modestly exceeded expectations. Investors are focusing on reduced losses and the possibility of improving earnings momentum despite year-over-year revenue pressure. Improved earnings momentum at C3.ai
  • Northland expects C3.ai’s fiscal 2028 loss to narrow to $1.85 per share, compared with an estimated $2.21 loss for the current fiscal year. Its quarterly forecasts call for losses to gradually improve, supporting the case for longer-term operating progress.
  • The Northland upgrade is notable, but the company remains unprofitable and its forecasts still show sizable losses. The broader analyst view is more cautious, with several firms maintaining Hold or Sell ratings and a consensus target below the current trading level.
  • CEO Thomas Siebel sold 435,363 shares valued at approximately $5.15 million, reducing his direct stake by 37.61%. The sale was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but its size may weigh on investor sentiment. SEC filing for Thomas Siebel sale
  • CFO Hitesh Lath sold 20,000 shares for $247,400, reducing his ownership by 6.15%. This transaction also followed a 10b5-1 plan, but combined executive selling may create near-term pressure. CFO insider sale
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