Shares of BigBear.ai Holdings Inc. (BBAI) tumbled 5.17% on Friday, after a major insider owning over 10% of the company's stock sold a significant stake.
BigBear.ai, a provider of cyber engineering and analytics solutions, saw BBAI Ultimate Holdings LLC, an insider owning over 6 million shares, dispose of 6,075,697 shares at an average price of $4.15 per share on December 26th.
Large insider selling is often viewed as a bearish signal by investors, as it may indicate that those with an intimate knowledge of the company's operations believe the stock is overvalued at current levels. The market appears to have interpreted BBAI Ultimate Holdings' share sale in a similar vein, sending BigBear.ai's stock price sharply lower on Friday.