What's Going On With Symbotic Shares Thursday?

Symbotic Inc. (NASDAQ:SYM) shares are trading lower Thursday after the company announced a 10 million share offering, including 6.5 million shares from the company and 3.5 million from a selling stockholder.

• SYM is feeling the pressure from bearish momentum. See what is driving the movement here.

What To Know: Symbotic announced it commenced an underwritten public offering of 10 million shares of Class A common stock. The company is offering 6.5 million shares, while SVF Sponsor III (DE) LLC, an affiliate of SoftBank Group Corp., is offering 3.5 million shares in a secondary offering.

Symbotic said it expects to grant underwriters a 30-day option to purchase up to an additional 1.5 million shares at the offering price. The company said it intends to use its portion of the proceeds for general corporate purposes. The selling stockholder will receive all proceeds from its portion of the offering.

Goldman Sachs and Citigroup are acting as lead book-running managers for the offering, with TD Securities serving as an additional book-running manager.

The company noted the offering will be made only by means of a prospectus supplement and accompanying prospectus filed with the SEC.

SYM Analysis: Symbotic is currently facing a significant pullback, trading 7.3% below its 20-day SMA and 7.5% below its 50-day SMA. This bearish positioning suggests some short-term weakness.

The RSI is sitting at 53.31, indicating a neutral stance. Traders should keep an eye on the support level at $61.50; a breach here could signal a deeper correction, while a move above resistance at $71.50 could indicate a continuation of the uptrend.

Looking at the 3-month performance, the stock is up 29.54%, reflecting a strong recovery from earlier lows. Over the past six months, it has surged 103.89%, showcasing robust long-term momentum, while the impressive 12-month gain of 135.95% highlights its overall strength in the market.

Overall, the current technical setup suggests that while there are signs of strength, traders should be cautious given the recent price action and the positioning relative to key moving averages. Monitoring the support and resistance levels will be crucial in determining the next steps for SYM.

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SYM Price Action: At the time of writing, Symbotic shares are trading 15.86% lower at $61.52, according to data from Benzinga Pro.

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