C3.ai Stock Sells Off as Founder Thomas Siebel Cuts Stake by 32%

Thomas Siebel, chairman of C3.ai, Inc. (NYSE:AI), sold 309,589 shares of the company on January 13, 2026, at an average price of $13.52 per share according to market data. The sale represents a 32.87% reduction in his ownership stake and totaled $4.19 million in value. Following the transaction, Siebel owns 632,256 shares valued at $8.55 million. The trade was disclosed in a filing with the Securities and Exchange Commission.

C3.ai reported its fourth-quarter earnings for 2025 on December 3, 2025, with a loss of $0.25 per share, surpassing the consensus estimate of $0.33. However, revenue for the quarter dropped by 20.3% year-over-year to $75.15 million. Despite the better-than-expected earnings, the company continues to face financial challenges, with a negative net margin of 108.06%.

Wall Street analysts have issued mixed evaluations of C3.ai's stock. Wedbush reiterated an 'Outperform' rating and set a $20.00 price target. Canaccord Genuity Group affirmed a 'Hold' rating with a $16.00 price objective. Weiss Ratings maintains a 'Sell' rating, citing concerns over the company's financial health.

Why Did This Happen?

Thomas Siebel's recent stock sale raises questions about his confidence in C3.ai's future performance. Siebel's stake has been a significant component of the company's ownership structure, and the large reduction suggests a shift in sentiment. The timing of the sale, just days before C3.ai's earnings report, adds to the intrigue. Analysts are now watching closely to see if this move signals a broader shift in investor sentiment.

How Did Markets React?

C3.ai's stock closed at $13.52 on January 16, 2026, down $0.40 from its previous close. The stock traded 4.66 million shares, which is slightly below its average daily volume. The stock has a 52-week range of $12.59 to $35.98. Despite the earnings beat, the stock has underperformed compared to its 50-day and 200-day moving averages.

The market's mixed reaction reflects the broader uncertainty about C3.ai's future. While some investors remain optimistic about the company's enterprise AI and IoT solutions, others are concerned about its financial performance and the large stock sale by its founder. The stock has a current market cap of $1.9 billion and a price-to-earnings ratio of -4.78.

What Are Analysts Watching Next?

Analysts are closely watching C3.ai's upcoming quarterly earnings and the company's ability to execute its long-term strategy. The company reported better-than-expected earnings in the fourth quarter, but the decline in revenue raised concerns. Analysts are also keeping an eye on C3.ai's financial position, including its cash reserves and net operating losses. The company has $675 million in cash, but it continues to report significant operating losses.

Institutional investors have shown mixed signals in recent months. Some, like Ameritas Investment Partners and ProShare Advisors, have increased their holdings, while others remain cautious. The company's stock is currently down 40% from its 2025 peak. As C3.ai moves into 2026, analysts will be watching for signs of improvement in both revenue and profitability.