Symbotic (NASDAQ:SYM) Stock Price Down 10.3% After Earnings Miss

Symbotic Inc. (NASDAQ:SYM)’s share price dropped 10.3% on Thursday following a weaker than expected earnings announcement. The company traded as low as $41.60 and last traded at $41.7370. Approximately 1,703,676 shares traded hands during trading, a decline of 8% from the average session volume of 1,859,767 shares. The stock had previously closed at $46.52.

The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.04). Symbotic had a negative return on equity of 0.68% and a negative net margin of 0.20%.The company had revenue of $720.84 million during the quarter, compared to the consensus estimate of $715.03 million. During the same period in the previous year, the business earned ($0.05) earnings per share. Symbotic’s revenue was up 21.7% on a year-over-year basis.

Symbotic News Roundup

Here are the key news stories impacting Symbotic this week:

• Positive Sentiment: Fiscal third-quarter revenue rose 22% year over year to approximately $721 million, exceeding the roughly $715 million consensus estimate. The company also reported $55 million in net income, compared with a $21 million loss in the year-ago quarter. Symbotic Reports Third Quarter Fiscal Year 2026 Results
• Positive Sentiment: Management projected fourth-quarter revenue of $760 million to $780 million, broadly in line with the $770.7 million analyst consensus, indicating continued demand for its warehouse-automation systems.
• Positive Sentiment: The earnings call emphasized margin gains, ongoing fourth-quarter expansion and a broader product portfolio, with management highlighting potentially larger growth inflections in fiscal 2027 and early 2028. SYM Q3 Earnings Call Puts Margin Gains and Expansion in Focus
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $75 price target, implying substantial upside from recent trading levels.
• Neutral Sentiment: Former Bain Capital co-chair Steve Pagliuca joined Symbotic’s board, potentially adding strategic and financial expertise as the company expands its AI-enabled robotics operations. Symbotic Reports Third Quarter Fiscal Year 2026 Results
• Neutral Sentiment: CFO Izilda Martins sold shares to cover tax withholding tied to vested equity awards, while directors Todd Krasnow and Charles Kane sold shares through pre-arranged Rule 10b5-1 plans. The transactions may affect sentiment but appear limited in signaling value.
• Negative Sentiment: Adjusted quarterly EPS was $0.09, below the $0.12-$0.13 analyst consensus. The 25% earnings shortfall overshadowed the revenue beat and renewed concerns about Symbotic’s ability to convert rapid growth into consistent profits. Symbotic Inc. Misses Q3 Earnings Estimates

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on SYM shares. Weiss Ratings lowered Symbotic from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 11th. The Goldman Sachs Group cut their price target on shares of Symbotic from $54.00 to $45.00 and set a “sell” rating on the stock in a report on Tuesday, May 26th. Robert W. Baird set a $51.00 price objective on shares of Symbotic in a research note on Thursday. DA Davidson reiterated a “buy” rating and set a $70.00 target price on shares of Symbotic in a report on Monday, May 11th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $75.00 target price on shares of Symbotic in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, Symbotic currently has an average rating of “Hold” and an average target price of $65.92.

Insider Buying and Selling at Symbotic

In other news, SVP Brian Daniel Alexander sold 9,130 shares of the business’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $40.30, for a total transaction of $367,939.00. Following the sale, the senior vice president owned 55,611 shares in the company, valued at approximately $2,241,123.30. The trade was a 14.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Todd Krasnow sold 25,422 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $52.45, for a total transaction of $1,333,383.90. Following the completion of the sale, the director directly owned 182,036 shares in the company, valued at $9,547,788.20. This represents a 12.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 143,433 shares of company stock valued at $6,627,326. Company insiders own 8.16% of the company’s stock.

Institutional Trading of Symbotic

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Parkside Financial Bank & Trust raised its stake in Symbotic by 100.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 536 shares of the company’s stock valued at $32,000 after buying an additional 268 shares during the last quarter. Quarry LP bought a new position in shares of Symbotic during the fourth quarter valued at $36,000. Parallel Advisors LLC increased its holdings 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 acquiring an additional 249 shares in the last quarter. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Symbotic during the fourth quarter valued at approximately $48,000. Finally, NewEdge Advisors LLC raised its stake in shares of Symbotic by 81.5% in the second quarter. NewEdge Advisors LLC now owns 1,276 shares of the company’s stock worth $50,000 after purchasing an additional 573 shares during the last quarter.

Symbotic Price Performance

The stock has a market capitalization of $24.86 billion, a P/E ratio of -823.90, a price-to-earnings-growth ratio of 7.00 and a beta of 1.94. The business’s 50 day moving average price is $43.02 and its 200 day moving average price is $50.90.

About Symbotic

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.