Symbotic (NASDAQ:SYM) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Symbotic from “hold” to “strong sell,” adding to a mixed analyst backdrop that still includes several buy ratings but an overall consensus of “Hold.”
• Recent quarterly results were mixed: Symbotic beat revenue expectations with $676.48 million in sales, but EPS came in at $0.01 versus the expected $0.12, and the company remains unprofitable on a net margin and ROE basis.
• Insider selling has been notable, with executives and insiders offloading shares in recent weeks; the article says insiders sold 147,798 shares worth about $8.2 million over the last 90 days.

Symbotic (NASDAQ:SYM - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Barclays boosted their price objective on Symbotic from $42.00 to $44.00 and gave the stock an "underweight" rating in a report on Monday, March 16th. Weiss Ratings lowered shares of Symbotic from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 11th. DA Davidson reissued a "buy" rating and issued a $70.00 price target on shares of Symbotic in a research note on Monday, May 11th. Finally, The Goldman Sachs Group lowered their price objective on shares of Symbotic from $54.00 to $45.00 and set a "sell" rating on the stock in a research report on Tuesday, May 26th. Seven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $65.23.

Symbotic Price Performance

SYM opened at $41.69 on Tuesday. The firm has a market capitalization of $25.13 billion, a P/E ratio of -833.63, a price-to-earnings-growth ratio of 6.09 and a beta of 1.93. Symbotic has a one year low of $38.19 and a one year high of $87.88. The company has a fifty day moving average price of $47.12 and a 200-day moving average price of $53.92.

Symbotic (NASDAQ:SYM - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.11). The business had revenue of $676.48 million during the quarter, compared to analysts' expectations of $662.65 million. Symbotic had a negative return on equity of 0.68% and a negative net margin of 0.20%.The company's quarterly revenue was up 23.1% on a year-over-year basis. During the same quarter last year, the business posted ($0.04) EPS. On average, analysts expect that Symbotic will post 0.23 earnings per share for the current year.

Insider Activity

In other news, insider William M. Boyd III sold 9,194 shares of Symbotic stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $58.75, for a total value of $540,147.50. Following the transaction, the insider owned 62,227 shares in the company, valued at approximately $3,655,836.25. The trade was a 12.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO James Kuffner sold 19,729 shares of the business's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $59.82, for a total value of $1,180,188.78. Following the completion of the sale, the chief technology officer directly owned 179,255 shares of the company's stock, valued at approximately $10,723,034.10. This trade represents a 9.91% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 147,798 shares of company stock valued at $8,221,095. Company insiders own 8.16% of the company's stock.

Institutional Investors Weigh In On Symbotic

A number of large investors have recently added to or reduced their stakes in SYM. Parkside Financial Bank & Trust increased its holdings in Symbotic by 100.0% during the 4th quarter. Parkside Financial Bank & Trust now owns 536 shares of the company's stock valued at $32,000 after purchasing an additional 268 shares during the period. Quarry LP purchased a new position in shares of Symbotic during the fourth quarter valued at approximately $36,000. Parallel Advisors LLC increased its stake in shares of Symbotic by 67.3% during the fourth quarter. Parallel Advisors LLC now owns 619 shares of the company's stock valued at $37,000 after buying an additional 249 shares during the period. Strategic Advocates LLC bought a new position in shares of Symbotic during the third quarter valued at approximately $42,000. Finally, Gordian Capital Singapore Pte Ltd bought a new position in shares of Symbotic during the fourth quarter valued at approximately $48,000.

Key Symbotic News

Here are the key news stories impacting Symbotic this week:

• Positive Sentiment: Analysts and recent commentary continue to argue that Symbotic could be undervalued relative to its warehouse automation growth narrative, with some articles saying the stock still looks cheap after a long run. Symbotic (SYM) Stock Still Looks Cheap Following Its 315% Run
• Neutral Sentiment: Research notes highlight mixed views on the stock, including a Hold-style rating from Zacks and a broader analyst consensus that remains around Hold despite several buy ratings. Symbotic (SYM) Could Be 32% Undervalued On Its Warehouse Automation Narrative
• Negative Sentiment: Recent insider sales from multiple directors may be read as a lack of near-term confidence, adding to pressure on the shares. Symbotic NASDAQ: SYM Director Sells 2,000 Shares

Symbotic Company Profile

Symbotic Inc NASDAQ: SYM is a provider of advanced warehouse automation and robotics systems designed to improve throughput, space utilization and labor productivity in distribution centers and fulfillment operations. The company develops integrated hardware and software solutions that automate the storage, retrieval, sorting and palletizing of goods, positioning itself as a systems integrator for material handling challenges faced by large-scale retailers, wholesalers and third-party logistics providers.

Products and services typically include autonomous robotic vehicles and shuttle systems, automated storage-and-retrieval equipment, robotic picking and palletizing cells, conveyors and sortation, together with control and management software that coordinates fleet operations and inventory flow.

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