Samsara Inc. (NYSE:IOT) experienced a notable increase in its stock price, rising by 16.1% during mid-day trading on Friday. The spike followed the company’s announcement of impressive earnings results that surpassed analysts’ expectations. Shares peaked at $46.30 during the session, before closing at $47.25, significantly up from the previous day’s close of $40.71.
During the trading session, approximately 2,698,153 shares changed hands, which marked a decline of 45% from the average trading volume of 4,873,886 shares. This performance comes as Samsara reported earnings of $0.15 per share (EPS) for the quarter, exceeding the consensus estimate of $0.12 by $0.03.
In terms of revenue, the company generated $415.98 million, surpassing the consensus forecast of $398.92 million. The year-over-year revenue growth stood at 29.2%, a significant improvement from the $0.07 EPS reported in the same quarter last year. For the fiscal year 2026, Samsara has provided guidance of $0.500 EPS and $0.120 to $0.130 EPS for the fourth quarter.
Analysts Adjust Ratings and Price Targets
In light of the robust earnings report, various research firms have revised their ratings and price targets for Samsara. The Royal Bank of Canada raised its price objective from $46.00 to $50.00, assigning an “outperform” rating. Meanwhile, Truist Financial increased its target from $35.00 to $39.00 and maintained a “hold” rating. Cowen reaffirmed a “buy” rating in their recent analysis, while Bank of America boosted its price target from $53.00 to $55.00, also rating the stock as a “buy.”
Conversely, Zacks Research downgraded Samsara from a “strong-buy” to a “hold” rating. Overall, eight analysts have rated the stock as a buy, six have issued hold ratings, and one has given a sell rating. According to data from MarketBeat.com, the consensus rating stands at “hold” with a target price of $49.73.
Insider Trading Activity
In recent insider trading activities, Sanjit Biswas sold 14,152 shares on December 3, 2023, at an average price of $38.10, amounting to a total transaction of $539,191.20. Post-transaction, Biswas holds 44,952 shares, valued at approximately $1,712,671.20, reflecting a 23.94% reduction in his position. Another insider, Adam Eltoukhy, sold 4,767 shares on November 20, 2023, for about $171,802.68. Following this sale, Eltoukhy owns 302,698 shares worth around $10,909,235.92, showing a 1.55% decrease in his stake.
In total, insiders have sold 3,730,107 shares valued at $143,045,198 in the last quarter, with 46.49% of the stock currently held by insiders.
Institutional Investor Activity
Several large investors have recently adjusted their holdings in Samsara. Gerber Kawasaki Wealth & Investment Management increased its stake by 0.5% during the first quarter, now owning 54,000 shares valued at $2,070,000. Lazard Asset Management LLC raised its holdings by 2.0% in the third quarter, acquiring an additional 279 shares. KLP Kapitalforvaltning AS also increased its stake by 0.3%, now holding 113,900 shares worth $4,243,000.
Overall, institutional investors now own 96.02% of Samsara’s stock, indicating strong confidence in the company’s continued performance. The stock currently has a market capitalization of $27.08 billion and a price-to-earnings ratio of -295.28, with a beta of 1.61.
Samsara Inc. focuses on providing solutions that connect physical operations data to its Connected Operations Cloud, which includes a data platform capable of aggregating and enhancing data from Internet of Things (IoT) devices. The firm’s offerings are designed to improve operational efficiency through advanced analytics and data security measures.
