What Can We Learn From C3.ai Inc.(AI)’s Valuation Ratios?

C3.ai Inc. (NYSE:AI) finished Wednesday with an addition of $1.72 to close at $46.76, an upside of 3.82 percent. An average of 1,416,940 shares of common stock have been traded in the last five days. There was a gain of $2.32 in the past week. The last 20 days have seen an average of 2,411,645 shares traded, while the 50-day average volume stands at 2,788,098.

AI stock has decreased by -3.59% in the last month. The company shares reached their 1-month lowest point of $42.70 on 10/05/21. Shares of the company touched a low of $42.70 and a high of $183.90 in 52 weeks. In spite of this, the price is down -74.57% from the 52-week high.


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Insider Transactions

3 days have passed since C3.ai Inc. (AI) last reported insider trading activity. Behzadi Houman, who is Chief Product Officer, most recently acquired $30,000 shares at $44.63 per share on Oct 11. In this transaction, the insider spent $1,339,023. Chief Product Officer, Behzadi Houman, disposed of 15,887 shares at a price of $43.76 on Oct 04. The insider now owns more than $695,246 worth of shares. Prior to that, Director HOUSE PATRICIA A went on to Sale 46,000 shares at $49.50 each on Sep 23. An amount of $2,277,000 was transacted.

Valuation Metrics

C3.ai Inc. (AI) has a trailing price-to-earnings (P/E) ratio of 29.20 for the broader industry and 37.24 for the sector. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 25.37, the price-to-book (PB) ratio at 4.58.

The company’s most recent quarterly dividend payment was $0.2250 a share, without any change from last year.

The quick ratio of C3.ai Inc. for the three months ended July 30 was 8.30, and the current ratio was 8.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending July 30.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, C3.ai Inc.’s return on assets was -9.50%, compared to -0.8% over the last five years. Meanwhile, the return on equity (ROE) for the past 12 months has been -12.50% and the 5-year average holds at -8.4%. For the broader industry, ROE averaged 3.34 over the past year.

Earnings Surprise

The analyst consensus anticipated C3.ai Inc.’s latest quarter earnings to come in at -$0.28 per share, but it turned out to be -$0.22, a 21.40% surprise. At the end of the quarter ending July 30, C3.ai Inc.’s stock balance sheet showed total debt was $4.0 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at C3.ai Inc. (AI) price momentum. RSI 9-day as of the close on 13 October was 54.47%, suggesting the stock is Neutral, with historical volatility in this time frame at 42.56%.

As of today, AI’s price is $45.06 +5.22% or $2.32 from its 5-day moving average. AI is currently trading -5.88% lower than its 20-day SMA and -23.57% lower than its 100-day SMA. However, the stock’s current price level is -6.10% below the SMA50 and -67.95% below the SMA200.

The stochastic %K and %D were 33.76% and 26.59%, respectively, and the average true range (ATR) was 1.88. With the 14-day stochastic at 51.46% and the average true range at 2.00, the RSI (14) stands at 49.55%. The stock has reached 0.63 on the 9-day MACD Oscillator while the 14-day reading was at -0.32.

Analyst Ratings

Needham reiterated its a Buy rating on C3.ai Inc. (NYSE: AI), but raised their price target to $195, indicating a potential price increase of 317.02% for the stock.The consensus rating for C3.ai Inc. (AI) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell AI, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

What is AI’s price target for the next 12 months?

Analysts predict a range of price targets between $45.00 and $122.00, with a median target of $65.00. Taking a look at these predictions, the average price target given by analysts for C3.ai Inc. (AI) stock is $69.89.

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