Symbotic (SYM) Nosedives 17% on Million-Dollar Share Sale

We recently published 10 Stocks Losing Their Fire. Symbotic Inc. (NASDAQ:SYM) is one of the worst performers on Thursday.

Symbotic fell sharply on Thursday, shedding 17.40 percent to close at $60.48 apiece as investor sentiment was dampened by plans to raise funds from the issuance of 10 million new shares.

In a statement, Symbotic Inc. (NASDAQ:SYM) said that it would sell 6.5 million Class A shares, while SoftBank Group Corp. would dispose of 3.5 million of the shares it owns.

The official price has yet to be divulged, albeit based on its closing price, it could rake in more than $500 million from the offer.

Symbotic Inc. (NASDAQ:SYM) said it would only raise funds from the 6.5 million shares, with net proceeds expected to be used for general corporate purposes.

SoftBank Group, on the other hand, will take all earnings from the 3.5 million shares.

In line with the offer, Symbotic Inc. (NASDAQ:SYM) would grant its underwriters a 30-day option to purchase up to an additional 1.5 million shares at the public offering price.

In other developments, the company on Tuesday earned a “sell” recommendation from Goldman Sachs, alongside a new price target of $47.

According to Goldman, the revision was based on its concerns for Symbotic Inc.’s (NASDAQ:SYM) customer base and cash flow projects.

Goldman said that while Symbotic Inc.’s (NASDAQ:SYM) technology was well received by retailing giant Walmart, with the latter securing systems for all 42 of its regional distribution centers, its number of independent customers has become limited in the past few years.

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Disclosure: None. This article is originally published at Insider Monkey.