ChargePoint (NYSE: CHPT) stock is losing power on Tuesday and it has to do with a recent stock offering announcement. The drop comes after the company announced that certain shareholders are planning to launch a secondary stock offering.
Full Answer
Why is ChargePoint stock falling?
On July 13, ChargePoint stock is falling after the company announced that some of the shareholders will be selling almost 13.8 million shares. These shares are being sold entirely by selling shareholders and aren't new shares issued by the company.
Which company insiders have sold ChargePoint stock in the last year?
Company insiders that have sold ChargePoint company stock in the last year include Christopher Burghardt, Colleen Jansen, Eric Sidle, Henrik Gerdes, Lawrence Lee, Michael D Hughes, Michael Linse, Neil S Suslak, Q-Grg Vii (Cp) Investment Part, Rebecca Chavez, Rex S Jackson, Tony Sanchez, and William J Loewenthal.
Does ChargePoint stock pay a dividend?
ChargePoint does not currently pay a dividend. ChargePoint does not have a long track record of dividend growth. In the past three months, ChargePoint insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $20,775,052.00 in company stock.
What are analysts'target prices for ChargePoint stock?
8 Wall Street analysts have issued 12 month target prices for ChargePoint's stock. Their forecasts range from $28.00 to $46.00. On average, they expect ChargePoint's stock price to reach $37.14 in the next twelve months. This suggests a possible upside of 42.4% from the stock's current price.
Why is ChargePoint stock dropping so much?
Earnings Fell Short. Shares of EV-charging company ChargePoint Holdings were falling Wednesday after it boosted revenue guidance but reported a fiscal third-quarter loss wider than a year earlier.
Is ChargePoint stock a good buy?
Key Data Points. ChargePoint stock is trading at a forward price-to-sales ratio of nearly 7, which compares favorably with a ratio of 16 for Blink Charging and 20 for EVgo. In short, if you are looking to invest in an EV charging company, ChargePoint looks like the better bet.
What is happening to ChargePoint?
(CHPT) Reports Q1 Loss, Tops Revenue Estimates. ChargePoint Holdings, Inc. (CHPT) delivered earnings and revenue surprises of -16.67% and 8.70%, respectively, for the quarter ended April 2022.
Is ChargePoint losing money?
A Dwindling Cash Balance Despite its lackluster bottom line, ChargePoint has developed aggressive expansion plans. Consequently, it has severely compromised its cash reserves. The company burnt through more than $100 million in just the past nine months.
Is ChargePoint overvalued?
ChargePoint Holdings, Inc. may be overvalued. Its Value Score of F indicates it would be a bad pick for value investors. The financial health and growth prospects of CHPT, demonstrate its potential to underperform the market. It currently has a Growth Score of D.
Will ChargePoint stock go up?
ChargePoint will report Q4 2021 earnings on March 2nd and provide forward guidance for 2022. EV sales exploded in 2021 with signs pointing towards more industry growth in 2022. CHPT stock has fallen near pre-SPAC IPO levels and now is a good chance to buy the dip while there is fear surrounding high growth stocks.
Who owns ChargePoint stock?
The Vanguard Group, IncThe Vanguard Group, Inc.
What companies compete ChargePoint?
ChargePoint's top competitors include VOLTERIO, Envision Solar, Greenlots and ASR. ChargePoint is a technology company that operates an open electric vehicle charging network. VOLTERIO is a company developing automatic electric vehicle charging solutions.
Why is ChargePoint stock going up?
A further break-up of its revenue revealed robust demand for ChargePoint's networked EV charging hardware as well as strong growth in recurring revenue from its subscription software and services. So as of Jan. 31, the company had more than 174,000 ports versus 163,000 ports as of Oct. 31, 2021.
Does ChargePoint make profit?
Its market cap has now risen to over $6 billion. For the fiscal year 2021, ChargePoint generated revenues of $146 million, up from the $144.5 million it recorded in 2020.
Is ChargePoint making money?
Can ChargePoint become profitable? The issue with ChargePoint, like other EV charging companies, is that while its revenue is growing, its losses are also mounting. In the third quarter, ChargePoint generated revenue of $65 million. Its net loss for the quarter stood at a loss of $69 million.
Who is the CEO of ChargePoint?
Pasquale Romano (Feb 2011–)ChargePoint, Inc. / CEO
Investors are no longer patient with early-growth tech companies, especially in the electric vehicle sector
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years.
Key Points
Hopes for growing future recurring revenue are being overshadowed by the macroeconomic environment.
What happened
EV charging network company ChargePoint Holdings ( NYSE:CHPT) has pretty much fallen out of favor with investors. Even after a big down month in December, when the stock dropped about 25%, shares in ChargePoint continue to fall.
So what
ChargePoint is a leading EV charging company in North America and is expanding in Europe. It has become one of the few EV companies going public through SPAC mergers to follow up with increasing revenue projections. The company has raised its calendar year 2021 annual revenue guidance in each of the past two quarterly reports.
Now what
This week's stock drop doesn't come with any current news from the company. ChargePoint provides electric fueling networks for commercial, fleet, and residential customers. It reported 79% year-over-year revenue growth in its recently reported fiscal 2022 third quarter, ended Oct. 31, 2021.
The EV charging company boosted annual revenue guidance, but losses grew year over year
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years.
Key Points
Regulators are scrutinizing companies that have gone public via a SPAC merger for providing unreasonable financial estimates, but ChargePoint is beating its prior projections.
What happened
Electric vehicle (EV) charging network leader ChargePoint Holdings ( NYSE:CHPT) reported its quarterly results last night, and the market is reacting negatively today. Shares dropped 10% in early trading Wednesday, and as of 10:16 a.m. ET, they remained down more than 8%.
So what
The boost in revenue guidance is the second one from the company this year, after going public through a merger with a special purpose acquisition company (SPAC) earlier in 2021. But investors appear to be reacting more to the net loss of $69.4 million the company reported.
Now what
Investors might be concerned about the company's path to profitability due to competition and uncertainty about how the EV sector will evolve. But ChargePoint reported its gross margin increased 500 basis points year over year to 25%, while revenue grew 79%.
Key Points
A secondary public stock offering appears to have been the biggest factor in the EV charging specialist's sell-off last month.
NYSE: CHPT
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What happened
Shares of ChargePoint Holdings ( CHPT 0.51% ) sank 31.9% in July, according to data from S&P Global Market Intelligence. The stock pulled back amid a new secondary share offering and market pressure hitting speculative and growth-dependent technology stocks.
NYSE: CHPT
Concerns related to inflation and the COVID-19 pandemic prompted volatility for many growth-dependent stocks last month, and market trends dragged some electric vehicle (EV) and charging players lower in the period. ChargePoint Holdings' announcement and completion of a secondary share offering also appears to have spooked investors.
So what
ChargePoint Holdings announced on July 14 that its underwritten secondary public offering of 12 million shares by certain stockholders would be priced at $23.50 per share.
Now what
ChargePoint Holdings stock has regained some ground early in August trading. The company's share price is up roughly 4.1% in the month so far.
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Who is Evan from ChargePoint?
ChargePoint launches a secondary offering a few months after closing its de-SPAC merger. Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
Is ChargePoint a dilutive capital raise?
Charge Point is not issuing any new shares and will not receive any of the proceeds from the deal; this is not a dilutive capital raise. Instead, existing shareholders are collectively selling 12 million shares of stock, while the underwriters have a greenshoe option for another 1.8 million shares. Image source: ChargePoint.
ChargePoint's network
ChargePoint is among the largest EV charging networks in North America and Europe. The company also offers DCFC. It has over 5,000 customers in the commercial and fleet market, which includes almost two-thirds of Fortune 50 customers.
Why CHPT stock is falling
Looking at the long-term picture, the fall in CHPT stock is due to a sell-off in all green economy stocks. Markets got a little too excited about the sector's prospects, which led to sky-high valuations. Now, the stocks have fallen and look much more reasonably valued than they did at the peak.
Will CHPT stock recover and go back up?
Wall Street analysts are bullish on ChargePoint stock. All seven analysts covering the stock rate it as a buy or some equivalent. Its median target price of $39 implies returns of over 35 percent over the next 12 months.
About ChargePoint
ChargePoint Holdings, Inc. provides electric vehicle (EV) charging networks and charging solutions in the United States. It offers a portfolio of hardware, software, and services for commercial, fleet, and residential customers. The company was founded in 2007 and is headquartered in Campbell, California.
Headlines
Better Buy: ChargePoint or a 50/50 Split of Lucid and Rivian? - Motley Fool
ChargePoint (NYSE:CHPT) Frequently Asked Questions
14 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for ChargePoint in the last twelve months. There are currently 5 hold ratings and 9 buy ratings for the stock.