Barclays Initiates Coverage on Symbotic (NASDAQ:SYM)

Key Points

• Symbotic was downgraded to a "strong sell" rating by Barclays, following similar downgrades from other analysts, reflecting significant concerns about the stock's future performance.
• The company's recent quarterly earnings revealed a loss of ($0.05) per share, falling short of analysts’ expectations, despite a revenue increase of 25.9% year-over-year.
• Insider activity showed significant stock sales, with insiders selling over 455,000 shares worth more than $22 million in the last three months, indicating potential lack of confidence in the company's future.

Analysts at Barclays began coverage on shares of Symbotic (NASDAQ:SYM - Get Free Report) in a report issued on Tuesday, MarketBeat Ratings reports. The brokerage set an "underweight" rating and a $38.00 price target on the stock. Barclays's target price would indicate a potential downside of 44.79% from the stock's current price.

A number of other brokerages also recently weighed in on SYM. DA Davidson reissued a "neutral" rating and issued a $47.00 price target (up from $35.00) on shares of Symbotic in a report on Monday, August 25th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Symbotic in a research note on Wednesday. Arete lowered shares of Symbotic from a "buy" rating to a "neutral" rating and set a $50.00 price objective for the company. in a research note on Friday, July 25th. Zacks Research raised shares of Symbotic from a "strong sell" rating to a "hold" rating in a research note on Wednesday, October 1st. Finally, Robert W. Baird lowered shares of Symbotic from an "outperform" rating to a "neutral" rating and set a $55.00 price objective for the company. in a research note on Thursday, August 7th. Seven equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Symbotic presently has a consensus rating of "Hold" and an average price target of $44.61.

Symbotic Price Performance

SYM opened at $68.83 on Tuesday. Symbotic has a 12-month low of $16.32 and a 12-month high of $71.29. The firm's fifty day moving average price is $52.67 and its 200 day moving average price is $38.61. The stock has a market capitalization of $40.64 billion, a PE ratio of -983.15, a P/E/G ratio of 13.26 and a beta of 2.06.

Symbotic (NASDAQ:SYM - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported ($0.05) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.08). The firm had revenue of $592.12 million for 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 revenue was up 25.9% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.02) EPS. On average, equities research analysts forecast that Symbotic will post 0.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Charles Kane sold 25,000 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $47.62, for a total value of $1,190,500.00. Following the sale, the director owned 79,507 shares in the company, valued at approximately $3,786,123.34. This represents a 23.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Rollin L. Ford sold 90,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $51.57, for a total value of $4,641,300.00. Following the completion of the sale, the director directly owned 14,507 shares in the company, valued at $748,125.99. This trade represents a 86.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 455,326 shares of company stock worth $22,622,014 in the last three months. 0.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Symbotic

Several hedge funds and other institutional investors have recently modified their holdings of SYM. Amanah Holdings Trust purchased a new position in Symbotic in the second quarter worth $19,824,000. Canada Pension Plan Investment Board purchased a new stake in Symbotic in the 1st quarter worth approximately $4,968,000. ARK Investment Management LLC grew its stake in Symbotic by 106.9% in the first quarter. ARK Investment Management LLC now owns 393,293 shares of the company's stock worth $7,948,000 after purchasing an additional 203,226 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Symbotic by 16.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,343,902 shares of the company's stock valued at $27,155,000 after buying an additional 187,538 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in Symbotic in the 2nd quarter worth about $5,504,000.

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.