Symbotic (NASDAQ:SYM) Trading Down 15.5% After Earnings Miss

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.

Shares of Symbotic Inc. (NASDAQ:SYM - Get Free Report) dropped 15.5% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $47.50 and last traded at $53.18. Approximately 3,853,453 shares were traded during mid-day trading, an increase of 96% from the average daily 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 for the quarter, compared to analyst estimates of $533.55 million. Symbotic had a negative return on equity of 1.26% and a negative net margin of 0.23%. The business's revenue was up 25.9% on a year-over-year basis. During the same period last year, the firm posted ($0.02) earnings per share.

Analyst Ratings Changes

A number of brokerages recently issued reports on SYM. Oppenheimer increased their price target on Symbotic from $54.00 to $59.00 and gave the stock an "outperform" rating in a research report on Thursday. Arete lowered shares of Symbotic from a "buy" rating to a "neutral" rating and set a $50.00 target price for the company. in a report on Friday, July 25th. Arete Research lowered Symbotic from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Deutsche Bank Aktiengesellschaft downgraded shares of Symbotic from a "buy" rating to a "hold" rating and set a $51.00 price target on the stock. in a report on Friday, July 18th. Finally, The Goldman Sachs Group decreased their target price on shares of Symbotic from $25.00 to $18.00 and set a "neutral" rating for the company in a research report on Thursday, April 10th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat.com, Symbotic has an average rating of "Hold" and a consensus target price of $41.13.

Insiders Place Their Bets

In other Symbotic news, CFO Carol J. Hibbard sold 6,293 shares of Symbotic stock in a transaction on Monday, August 4th. The shares were sold at an average price of $55.42, for a total value of $348,758.06. Following the transaction, the chief financial officer directly owned 61,971 shares of the company's stock, valued at approximately $3,434,432.82. The trade was a 9.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 transaction of $1,225,000.00. Following the sale, the insider owned 34,544 shares of the company's stock, valued at $1,692,656. The trade was a 41.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 81,536 shares of company stock valued at $3,590,569. Insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Symbotic

Several hedge funds and other institutional investors have recently bought and sold shares of SYM. Walmart Inc. purchased a new stake in Symbotic during the fourth quarter worth approximately $355,650,000. JPMorgan Chase & Co. raised its holdings in shares of Symbotic by 100.6% during the fourth quarter. JPMorgan Chase & Co. now owns 17,349 shares of the company's stock worth $411,000 after purchasing an additional 3,110,075 shares during the period. Vanguard Group Inc. raised its holdings in shares of Symbotic by 41.3% during the fourth quarter. Vanguard Group Inc. now owns 4,970,292 shares of the company's stock worth $117,846,000 after purchasing an additional 1,452,627 shares during the period. Raymond James Financial Inc. bought a new position in shares of Symbotic during the fourth quarter worth about $20,754,000. Finally, Amanah Holdings Trust bought a new position in shares of Symbotic during the second quarter worth about $19,824,000.

Symbotic Stock Down 15.8%

The firm's 50-day moving average price is $41.42 and its 200 day moving average price is $30.25. The firm has a market cap of $31.22 billion, a P/E ratio of -1,329.53, a price-to-earnings-growth ratio of 65.84 and a beta of 2.06.

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.

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