Symbotic’s Expansion Stagnation and Legal Challenges Signal Potential Stock Decline

Analyst Hamed Khorsand of BWS Financial maintained a Sell rating on Symbotic (SYM – Research Report), retaining the price target of $10.00.

Hamed Khorsand’s rating is based on several critical factors affecting Symbotic’s current market position. One major concern is the stagnation in the number of system placements, as the company did not add any new locations in the fiscal second quarter, indicating potential delays in their development process. This stagnation suggests that Symbotic might have reached a plateau in its expansion efforts.
Additionally, Symbotic’s close ties with Walmart and the ongoing legal issues involving The Kroger Co. and Albertsons Companies, which mention C&S Wholesale Grocers, could restrict Symbotic’s ability to secure orders from these and potentially other national clients. The combination of these factors, along with the slowdown in system deployments, suggests that Symbotic’s stock is likely to decline towards the target price of $10.

Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SYM in relation to earlier this year.