Symbotic (NASDAQ:SYM) Shares Gap Down After Earnings Miss

Key Points

• Symbotic Inc. shares gapped down to $50.03 after reporting an earnings miss, with a quarterly EPS of ($0.05) compared to analysts' estimates of $0.03.
• The company achieved a 25.9% increase in revenue year-over-year, reporting $592.12 million during the quarter, surpassing expectations of $533.55 million.
• Analyst ratings show a mixed outlook for Symbotic, with one sell rating, ten hold ratings, and seven buy ratings, and an average target price of $41.13.

Symbotic Inc. (NASDAQ:SYM - Get Free Report)'s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $62.90, but opened at $50.03. Symbotic shares last traded at $53.37, with a volume of 2,401,934 shares trading hands.

The company reported ($0.05) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.08). The company had revenue of $592.12 million for the quarter, compared to analyst estimates of $533.55 million. Symbotic had a negative net margin of 0.38% and a negative return on equity of 2.02%. The firm's quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the previous year, the business posted ($0.02) EPS.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Oppenheimer lifted their price objective on shares of Symbotic from $54.00 to $59.00 and gave the stock an "outperform" rating in a research note on Thursday. Needham & Company LLC lifted their price objective on shares of Symbotic from $32.00 to $57.00 and gave the stock a "buy" rating in a research note on Thursday. Arete Research cut shares of Symbotic from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. Citigroup reaffirmed a "buy" rating on shares of Symbotic in a research note on Monday, July 14th. Finally, Arete cut shares of Symbotic from a "buy" rating to a "neutral" rating and set a $50.00 price objective on the stock. in a research note on Friday, July 25th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $42.69.

Insider Buying and Selling at Symbotic

In related news, Director Todd Krasnow sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $55.15, for a total transaction of $220,600.00. Following the completion of the sale, the director directly owned 189,036 shares in the company, valued at approximately $10,425,335.40. This trade represents a 2.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider William M. Boyd III sold 25,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $59.00, for a total transaction of $1,475,000.00. Following the sale, the insider owned 31,884 shares of the company's stock, valued at approximately $1,881,156. This represents a 43.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 118,241 shares of company stock valued at $5,756,164 in the last 90 days. Corporate insiders own 0.60% of the company's stock.

Institutional Trading of Symbotic

Institutional investors have recently added to or reduced their stakes in the business. Walmart Inc. bought a new position in shares of Symbotic in the fourth quarter valued at approximately $355,650,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Symbotic by 16.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,343,902 shares of the company's stock valued at $27,155,000 after purchasing an additional 187,538 shares during the period. Raymond James Financial Inc. raised its position in shares of Symbotic by 12.1% in the first quarter. Raymond James Financial Inc. now owns 980,922 shares of the company's stock valued at $19,824,000 after purchasing an additional 105,616 shares during the period. Invesco Ltd. raised its position in shares of Symbotic by 25.9% in the fourth quarter. Invesco Ltd. now owns 727,890 shares of the company's stock valued at $17,258,000 after purchasing an additional 149,918 shares during the period. Finally, Exchange Traded Concepts LLC increased its position in Symbotic by 18.0% during the first quarter. Exchange Traded Concepts LLC now owns 680,734 shares of the company's stock worth $13,758,000 after acquiring an additional 104,068 shares during the period.

Symbotic Stock Up 2.6%

The stock's 50-day moving average is $43.13 and its 200-day moving average is $30.78. The firm has a market cap of $32.79 billion, a P/E ratio of -794.32, a price-to-earnings-growth ratio of 57.93 and a beta of 2.06.

Symbotic Company Profile

Symbotic Inc, an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain.