Symbotic Raises $358 Million Through Share Sale Amid 29% December Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
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Source: Fool
- Stock Volatility: Symbotic's shares fell 29% in December despite a 150% annual increase, indicating market concerns about its valuation, which could impact investor confidence.
- Financing Decision: The company announced a 10 million share sale at $55 each on December 3, raising $358 million, raising questions about the necessity of this capital given its strong cash position.
- Shareholder Dynamics: SoftBank sold 3.5 million shares in this offering while retaining nearly 40 million shares, suggesting ongoing confidence in Symbotic, although the sale raised concerns about shareholder dilution.
- Market Outlook: Management forecasts a 27% growth for the upcoming quarter, marking its first healthcare client acquisition, which could provide significant diversification and growth opportunities beyond its reliance on e-commerce automation, particularly with Walmart accounting for 85% of revenue last year.
Analyst Views on SYM
Wall Street analysts forecast SYM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SYM is 52.50 USD with a low forecast of 35.00 USD and a high forecast of 83.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
4 Hold
1 Sell
Hold
Current: 69.620
Low
35.00
Averages
52.50
High
83.00
Current: 69.620
Low
35.00
Averages
52.50
High
83.00
About SYM
Symbotic Inc. is an automation technology company reimagining the supply chain with its end-to-end, artificial intelligence (AI) powered robotic and software platform. It develops, commercializes, and deploys end-to-end technology solutions that improve supply chain operations. It automates the processing of pallets and cases in large warehouses or distribution centers for some of the retail and wholesale companies in the world. The Symbotic platform is based on an approach to connecting producers of goods to end users in a way that resolves the mismatches of quantity, timing and location that arise between the two, while reducing costs. It utilizes fully autonomous robots, collectively controlled by its AI-enabled system software, to achieve at scale, real world supply chain improvements. It serves various industries: retail grocery, food wholesale, consumer packaged goods, retail general merchandise, footwear and apparel, and food and beverage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
