Understanding Why Symbotic Stock Is Sliding Today.

Shares of Symbotic fell to $41.6 during today's afternoon trading session -- a decrease of -4.5% that still sees the stock 16.37% above its average analyst target price of $35.75. So there may be further downside for the Farm & Heavy Construction Machinery stock, which analysts rate as buy on average. Current target prices range from $30.0 to 50.0 dollars per share.

The market, on the other hand, is a bit more pessimistic. Symbotic's short interest -- meaning the percentage of its share float that is being shorted on an expectation of a price decline -- is quite high at 28.1%. The float includes only shares that are available for public trading, and excludes preferred shares.

Short selling involves borrowing shares and then selling them at current market prices. In the successful version of the strategy, the shares are purchased at a lower price at some time in the future. The investor then returns the shares to the lender, and keeps the profit made on the sell/buy transaction.

Another way to gauge the sentiment on Symbotic is to look at the percentage of institutions that are invested in the stock. In this case, 58.1% of the shares are held by pension, mutual, and hedge funds, which shows that these institutions probably have strong confidence in the stock.

If institutions are invested in a particular stock, it shows in most cases that they have performed quality research and concluded that it is a good investment. In some cases, however, increases in institutional ownership could be a sign of a takeover attempt or proxy fight, which can actually injure share prices. Also, institutions are not infallible, and can certainly make miscalculations -- often with spectacular results.

Overall, there is mixed market sentiment towards Symbotic because of an analyst belief that shares are overpriced, a buy rating, an unusually large proportion of its shares sold short, and an average number of institutional investors. Investors should not base their decisions on market sentiment only, they should also be aware of a stock's fundamentals before committing.

At a glance, here are some essential statistics you may want to know about SYM:

  • It has trailing 12 month earnings per share (EPS) of $-0.35 per share

  • Symbotic has a trailing 12 month Price to Earnings (P/E) ratio of -118.9 while the S&P 500 average is 15.97

  • The company has a Price to Book (P/B) ratio of 1066.75 in contrast to the S&P 500's average ratio of 2.95

  • Symbotic is a Industrials company, and the sector average P/E and P/B ratios are 20.49 and 3.78 respectively

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.