Symbotic Inc. (SYM) is experiencing a decline in its stock price today, primarily due to a downgrade from Northland Capital Markets. The firm lowered its price target for Symbotic by $18, reflecting concerns over the company's recent financial restatements and credibility issues. This downgrade follows Symbotic's announcement on November 27th that it would restate its fiscal year 2024 financial results due to errors in revenue recognition related to cost overruns on certain deployments. These issues have led to a significant reduction in the company's reported revenues and adjusted EBITDA, further impacting investor confidence.
Additionally, the company is facing multiple investigations from law firms like Rosen Law Firm and Johnson Fistel, LLP, which are looking into potential securities claims and violations of securities laws. These investigations are centered around allegations that Symbotic may have issued misleading business information, contributing to the stock's downward pressure. The combination of these factors has led to increased uncertainty and volatility surrounding Symbotic's stock.
Symbotic's stock is currently trading at $26.27, down 2.32% from its previous close of $26.90, and has dropped 5.34% from its opening price of $27.76.