Symbotic Inc. director Todd Krasnow sells over $364k in company stock

In a recent transaction, Symbotic Inc. (NASDAQ:SYM) director Todd Krasnow sold a total of 17,000 shares of the company's Class A common stock, according to a Form 4 document filed with the Securities and Exchange Commission. The sales were conducted in multiple transactions at prices ranging between $21.11 and $21.71, resulting in a total value of approximately $364,765.

The transactions included a sale of 2,000 shares at an average price of $21.3276, amounting to $42,655, and another sale of 15,000 shares at an average price of $21.474, totaling $322,110. These sales occurred on August 5, 2024, and were reported in the filing dated August 7, 2024.

The filing also detailed that in connection with the sales, Krasnow redeemed 17,000 Symbotic Holdings Units for an equal number of Class A common stock shares. Following these transactions, Krasnow's direct and indirect holdings in the company were adjusted. The report indicated that Krasnow may be considered the beneficial owner of securities held by Inlet View, Inc., and disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.

Symbotic Inc., known for its innovative approach in the general industrial machinery and equipment sector, has not publicly commented on these transactions. Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation and future prospects.

For more detailed information regarding the transactions and Krasnow's holdings, interested parties can refer to the full Form 4 filing available on the SEC's website.

In other recent news, Symbotic Inc. has been the subject of several analyst reports. Craig-Hallum decreased their price target on Symbotic from $54.00 to $45.00, while maintaining a buy rating. The firm attributed this adjustment to longer construction schedules and rising implementation costs, which have increased expenses in the recent quarter. Despite these challenges, Craig-Hallum expressed confidence in Symbotic's ability to address these issues swiftly.

On the other hand, Needham and TD Cowen have also reduced their price targets for Symbotic to $40.00 and $43.00 respectively, maintaining a buy rating on the stock. These firms pointed to weaker System gross margins influenced by prolonged construction schedules and rising costs.

In terms of financial performance, Symbotic reported a 58% increase in revenue for the third fiscal quarter of 2024, reaching $492 million. This robust growth surpassed expectations and was 6% higher than the consensus. However, the company's adjusted EBITDA fell short due to the aforementioned margin pressures.

Looking ahead, Symbotic anticipates a short-term slowdown in revenue growth but projects a reacceleration of revenue growth in the first quarter of fiscal 2025. For the fourth quarter, the company's financial outlook estimates revenue between $455 million and $475 million, with adjusted EBITDA of $28 million to $32 million. These recent developments provide investors with a clear picture of Symbotic's current situation and future expectations.

InvestingPro Insights

As investors evaluate the recent insider sales at Symbotic Inc. (NASDAQ:SYM), it's important to consider the company's financial health and market performance. According to InvestingPro data, Symbotic has a market capitalization of $12.68 billion, reflecting its significant presence in the industrial machinery and equipment sector. Despite a challenging market environment, the company has demonstrated impressive revenue growth, with a 62.86% increase over the last twelve months as of Q3 2024. This growth momentum is also evident in the quarterly figures, with a 57.73% revenue increase in Q3 2024.

However, the company's stock has experienced considerable volatility. InvestingPro Tips suggest that Symbotic's stock price has taken a notable hit, with a 1-week total return of -18.8% and a 1-month total return of -39.21%. This downward trend extends over the last three months, with a total return of -53.18%. These figures could signal a cautious stance among investors, aligning with the recent insider sales.

Yet, there are positive indicators for the future. InvestingPro Tips highlight that analysts expect Symbotic's net income to grow this year, and they anticipate sales growth in the current year. These projections, coupled with the company's strong revenue growth, may offer a silver lining for potential investors.

For those considering Symbotic Inc. for their portfolio, there are additional InvestingPro Tips available that delve deeper into the company's performance and projections. Interested readers can find a comprehensive list of these tips by visiting the InvestingPro platform at https://www.investing.com/pro/SYM.

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