What Happened?
Shares of smart home company SmartRent (NYSE: SMRT) fell 29.5% in the morning session after the company announced that sales for Q1 2025 would fall 18-20% compared to the previous year, raising concerns about weakening demand and competitive pressures which could negatively impact investor confidence and future growth prospects. Compounding the uncertainty, President and CEO Shane Paladin resigned, prompting the board to appoint Chairman John Dorman as interim CEO. The leadership transition, particularly during a period of financial underperformance, may deepen market anxiety regarding the stability of the business while the board searches for a permanent successor.
The shares closed the day at $0.81, down 28.6% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SmartRent? Access our full analysis report here, it’s free.
What The Market Is Telling Us
SmartRent’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. But moves this big are rare even for SmartRent and indicate this news significantly impacted the market’s perception of the business.
SmartRent is down 54% since the beginning of the year, and at $0.80 per share, it is trading 71.6% below its 52-week high of $2.83 from May 2024. Investors who bought $1,000 worth of SmartRent’s shares at the IPO in February 2021 would now be looking at an investment worth $72.47.
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