William Blair analyst Ross Sparenblek has maintained their neutral stance on SYM stock, giving a Hold rating on May 6.
Ross Sparenblek has given his Hold rating due to a combination of factors that reflect both positive and challenging aspects of Symbotic’s current financial situation. The company’s second-quarter performance showed revenue and adjusted EBITDA surpassing market expectations, indicating operational improvements and successful integration of the recently acquired Walmart Advanced Systems & Robotics. However, despite these positive results, the guidance for the upcoming quarter falls short of consensus estimates, suggesting potential headwinds in maintaining this growth trajectory.
Furthermore, while Symbotic achieved record gross margins due to favorable system completions and operational enhancements, the sustainability of these margins remains uncertain. The increase in operating expenses, which significantly exceeded initial guidance, poses a challenge to margin stability. Additionally, the extended average lead times of 24 months without a clear strategy for reduction further complicate the outlook. These mixed signals contribute to the Hold rating, as the company needs to address these uncertainties to provide a clearer path to sustained profitability.
Based on the recent corporate insider activity of 67 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.