Samsara Inc. (NYSE:IOT) experienced a significant stock price increase of 16.1% during mid-day trading on Friday, following an earnings report that exceeded analysts’ expectations. The stock reached a high of $46.30 and was last traded at $47.2450. During this trading session, 2,698,153 shares changed hands, a notable decline of 45% from the average volume of 4,873,886 shares. The previous closing price stood at $40.71.
In its quarterly report, Samsara announced earnings per share (EPS) of $0.15, surpassing the consensus estimate of $0.12 by $0.03. The company reported revenue of $415.98 million, which also exceeded the anticipated $398.92 million. Despite these positive figures, Samsara posted a negative return on equity of 7.53% and a net margin of 6.16%. Year-over-year, revenue saw an impressive increase of 29.2%, compared to the same quarter last year when the company reported EPS of $0.07.
Fiscal Year 2026 Guidance
Looking ahead, Samsara has set its guidance for fiscal year 2026 at an EPS of $0.500 and for the fourth quarter of 2026 at $0.120 – $0.130.
Analysts React to Earnings Report
Following the earnings announcement, several research firms adjusted their ratings and price targets for Samsara. The Royal Bank of Canada upgraded its price objective from $46.00 to $50.00, assigning the stock an “outperform” rating. Truist Financial increased its price target from $35.00 to $39.00, maintaining a “hold” rating. Cowen reiterated a “buy” rating, while Bank of America raised its target from $53.00 to $55.00, also assigning a “buy” rating.
Conversely, Zacks Research downgraded Samsara from a “strong-buy” rating to “hold” on August 15, 2023. Currently, eight investment analysts rate the stock as a buy, six as hold, and one as sell. MarketBeat.com reports a consensus rating of “hold” with a target price of $49.73.
Insider Trading Activity
Recent insider trading activity has raised some eyebrows among investors. Sanjit Biswas, an insider, sold 14,152 shares on December 3 at an average price of $38.10, netting a total of $539,191.20. Following this transaction, Biswas holds 44,952 shares valued at approximately $1,712,671.20, reflecting a 23.94% decrease in his position.
Another insider, Adam Eltoukhy, sold 4,767 shares on November 20 at an average price of $36.04, totaling $171,802.68. Eltoukhy now owns 302,698 shares valued at $10,909,235.92, representing a 1.55% decrease in ownership. In total, insiders sold 3,730,107 shares valued at $143,045,198 during the last quarter, with insiders currently holding 46.49% of the stock.
Institutional Investor Trends
Several institutional investors have recently altered their holdings in Samsara. Gerber Kawasaki Wealth & Investment Management increased its position by 0.5% in the first quarter, now owning 54,000 shares worth $2,070,000. Lazard Asset Management LLC grew its stake by 2.0% during the third quarter, owning 13,971 shares valued at $520,000.
KLP Kapitalforvaltning AS raised its holdings by 0.3%, now possessing 113,900 shares worth $4,243,000. Jefferies Financial Group Inc. and Cim LLC also increased their stakes, bringing institutional ownership to 96.02% of Samsara’s stock.
Samsara’s performance reflects a strong market presence, with a market capitalization of $27.08 billion, a P/E ratio of -295.28, and a beta of 1.61. The stock’s fifty-day simple moving average is $38.31, while its two-hundred-day average stands at $38.83.
About Samsara Inc.
Founded in 2015, Samsara Inc. specializes in connecting physical operations data to its connected operations cloud, both in the United States and internationally. The company’s Connected Operations Cloud integrates data from its IoT devices, offering embedded capabilities for artificial intelligence, workflows, analytics, alerts, API connections, and data security.
As the market continues to evolve, Samsara’s latest earnings report serves as a testament to its robust growth strategy and potential for investors looking for opportunities in the technology sector.
