Bridger Aerospace Group Holdings, Inc. (BAER) saw its stock price decline by 4.48% on January 16, 2025, closing at $2.77, down from the previous day's close of $2.90. The stock opened at $2.75 and fluctuated between a high of $2.87 and a low of $2.57, with trading volume significantly below average at 582,102 shares, representing just 43.18% of the typical daily volume. The decline in stock price appears to be influenced by concerns over the company's valuation, as its price-to-sales (P/S) ratio of 1.9x is higher than nearly half of the companies in the U.S. Commercial Services industry, which have ratios below 1.3x. This elevated P/S ratio may be causing investor caution despite the company's strong revenue growth.
Additionally, recent news of drone interference in aerial firefighting operations has likely contributed to investor unease. Although the recent drone collision involved a plane not owned by Bridger Aerospace, the incident underscores the risks associated with their operations. Interim CEO Sam Davis expressed concerns over drones colliding with firefighting aircraft, which could lead to catastrophic outcomes. This incident, coupled with valuation concerns, seems to have weighed on investor sentiment, leading to the stock's decline.