Symbotic (NASDAQ:SYM) Trading Down 15.5% Following Weak Earnings

Key Points

• Shares of Symbotic Inc. fell 15.5% following a quarterly earnings report that missed consensus estimates, with an earnings per share (EPS) of (0.05) compared to the expected 0.03.
• The company reported revenue of $592.12 million, surpassing analyst expectations of $533.55 million, but still exhibited a negative return on equity of (1.26%).
• Recent analyst sentiment shows mixed reactions: Oppenheimer raised its price target to $59.00, while others like Arete downgraded their ratings, highlighting a cautious outlook for the stock.

Symbotic Inc. (NASDAQ:SYM - Get Free Report)'s share price fell 15.5% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $47.50 and last traded at $53.18. 3,853,453 shares were traded during trading, an increase of 96% from the average session volume of 1,962,891 shares. The stock had previously closed at $62.90.

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 during the quarter, compared to the consensus estimate of $533.55 million. Symbotic had a negative return on equity of 2.02% and a negative net margin of 0.38%. The firm's quarterly revenue was up 25.9% compared to the same quarter last year. During the same period last year, the business earned ($0.02) EPS.

Analysts Set New Price Targets

SYM has been the subject of a number of research analyst reports. Northland Securities lifted their target price on Symbotic from $35.00 to $56.00 and gave the company an "outperform" rating in a research report on Tuesday, July 8th. Arete downgraded Symbotic from a "buy" rating to a "neutral" rating and set a $50.00 target price on the stock. in a research note on Friday, July 25th. Oppenheimer upped their target price on Symbotic from $54.00 to $59.00 and gave the stock an "outperform" rating in a research note on Thursday. Arete Research downgraded Symbotic from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. Finally, Needham & Company LLC increased their price target on Symbotic from $32.00 to $57.00 and gave the company a "buy" rating in a report on Thursday. One analyst has rated the stock with a sell rating, eleven have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $42.69.

Insider Transactions at Symbotic

In related news, insider William M. Boyd III sold 25,000 shares of Symbotic stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $49.00, for a total value of $1,225,000.00. Following the completion of the transaction, the insider directly owned 34,544 shares in the company, valued at approximately $1,692,656. This trade represents a 41.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Todd Krasnow sold 5,940 shares of Symbotic stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $26.38, for a total value of $156,697.20. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 118,241 shares of company stock valued at $5,756,164. Corporate insiders own 0.60% of the company's stock.

Institutional Trading of Symbotic

Several institutional investors and hedge funds have recently made changes to their positions in the company. Private Trust Co. NA grew its holdings in Symbotic by 10.0% during the 2nd quarter. Private Trust Co. NA now owns 2,200 shares of the company's stock valued at $85,000 after buying an additional 200 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in Symbotic by 24.0% in the second quarter. Farther Finance Advisors LLC now owns 1,765 shares of the company's stock valued at $69,000 after acquiring an additional 342 shares during the last quarter. PNC Financial Services Group Inc. raised its position in Symbotic by 7.1% in the second quarter. PNC Financial Services Group Inc. now owns 6,354 shares of the company's stock valued at $247,000 after purchasing an additional 422 shares during the period. Swiss National Bank raised its position in Symbotic by 0.9% in the first quarter. Swiss National Bank now owns 82,400 shares of the company's stock valued at $1,665,000 after purchasing an additional 700 shares during the period. Finally, Ulland Investment Advisors LLC increased its position in shares of Symbotic by 45.9% during the second quarter. Ulland Investment Advisors LLC now owns 2,225 shares of the company's stock worth $86,000 after acquiring an additional 700 shares during the last quarter.

Symbotic Stock Performance

The stock has a 50-day moving average price of $43.13 and a 200-day moving average price of $30.76.

About Symbotic

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.