Symbotic Inc. (SYM) saw its stock price decline by 4.65% to close at $25.65 on December 2, 2024, amid significant trading volume, which was 269.41% of its average. The stock opened at $27.76 and reached a high of $28.68 before plummeting to a low of $25.62. The primary driver of this downward movement was a downgrade from Northland Capital Markets, which slashed its price target by $18 due to concerns over Symbotic's recent financial restatements and credibility issues. This downgrade followed 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, Symbotic is under investigation by multiple law firms, including Rosen Law Firm and Johnson Fistel, LLP, for 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.