Samsara (NYSE:IOT) Shares Gap Down - Here's Why

Key Points

• Samsara shares fell 5.4%, opening at $38.50 after previously closing at $40.15, and later trading near $38.33.
• The company reported quarterly EPS of $0.20 versus the $0.16 consensus estimate, while revenue reached $508.44 million, up 29.9% year over year and above expectations.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus rating and a $52.44 price target, though insiders sold more than $102.7 million of stock over the past 90 days.

Samsara Inc. (NYSE:IOT - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $40.15, but opened at $38.50. Samsara shares last traded at $38.3310, with a volume of 2,550,508 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Jefferies Financial Group raised shares of Samsara to a "buy" rating in a research report on Thursday, June 11th. Craig Hallum restated a "buy" rating and set a $54.00 price objective on shares of Samsara in a research note on Friday. Wells Fargo & Company raised their price objective on Samsara from $50.00 to $58.00 and gave the company an "overweight" rating in a research report on Friday, September 4th. Wolfe Research reissued an "outperform" rating on shares of Samsara in a report on Thursday, June 11th. Finally, Truist Financial increased their target price on Samsara from $38.00 to $48.00 and gave the stock a "hold" rating in a research note on Friday, September 4th. Fifteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $52.44.

Samsara Stock Down 5.4%

The firm has a market capitalization of $22.14 billion, a P/E ratio of 236.37, a PEG ratio of 9.03 and a beta of 1.35. The firm has a 50 day moving average of $38.08 and a 200-day moving average of $33.45.

Samsara (NYSE:IOT - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.04. Samsara had a return on equity of 4.27% and a net margin of 4.90%.The firm had revenue of $508.44 million for the quarter, compared to analyst estimates of $483.29 million. During the same quarter last year, the company earned $0.12 EPS. The company's revenue was up 29.9% on a year-over-year basis. Samsara has set its FY 2027 guidance at 0.760-0.780 EPS and its Q3 2027 guidance at 0.180-1.090 EPS. As a group, research analysts expect that Samsara Inc. will post 0.15 EPS for the current year.

Insider Buying and Selling at Samsara

In related news, Director Marc L. Andreessen sold 613,660 shares of Samsara stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $32.27, for a total value of $19,802,808.20. Following the transaction, the director directly owned 2,256,487 shares of the company's stock, valued at $72,816,835.49. This trade represents a 21.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider John Bicket sold 245,925 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $36.77, for a total value of $9,042,662.25. Following the sale, the insider owned 94,000 shares of the company's stock, valued at $3,456,380. The trade was a 72.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,815,796 shares of company stock valued at $102,734,129 in the last ninety days. 35.13% of the stock is currently owned by company insiders.

Institutional Trading of Samsara

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC acquired a new position in Samsara during the fourth quarter worth about $13,464,000. Royal Bank of Canada boosted its position in Samsara by 100.3% in the first quarter. Royal Bank of Canada now owns 96,142 shares of the company's stock valued at $3,686,000 after buying an additional 48,135 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of Samsara by 2,444.6% during the first quarter. Jones Financial Companies Lllp now owns 17,787 shares of the company's stock worth $682,000 after buying an additional 17,088 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Samsara by 3.4% during the first quarter. Empowered Funds LLC now owns 10,168 shares of the company's stock worth $390,000 after buying an additional 335 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in shares of Samsara by 142.4% during the second quarter. Marshall Wace LLP now owns 68,860 shares of the company's stock worth $2,739,000 after buying an additional 40,450 shares in the last quarter. 96.02% of the stock is currently owned by institutional investors.

Samsara Company Profile

Samsara develops an industrial Internet of Things (IoT) platform designed to help organizations monitor, manage, and optimize physical operations. The company combines connected hardware — including telematics devices, GPS trackers, dash cameras, and environmental sensors — with cloud-based software to provide real-time visibility into vehicles, mobile equipment, and fixed assets. Its software offers tools for fleet management, driver and worker safety, asset tracking, compliance (including electronic logging), maintenance scheduling, and operational analytics.

The Samsara platform emphasizes integration of live data streams with analytics and workflow features to drive efficiency and safety across industries that rely on dispersed equipment and mobile workforces.

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