Shares of BigBear.ai Holdings Inc. (BBAI) plummeted 5.17% on Friday during the trading session, underperforming the broader market.
The significant decline was likely driven by a large insider selling activity at the company. According to reports, BBAI Ultimate Holdings LLC, an insider owning over 6 million shares of BigBear.ai, sold 6,075,697 shares at an average price of $4.15 per share on December 26th.
Massive insider selling is often interpreted as a bearish signal by investors, as it suggests insiders with intimate knowledge of the company's operations believe the stock is overvalued at current levels. The market appears to have reacted negatively to BBAI Ultimate Holdings' share sale, sending BigBear.ai's stock price sharply lower on Friday.