Investors may have different expectations and are focusing on what ChargePoint could bring to the table. Now, the merger between Switchback and ChargePoint ( NYSE: CHPT) has completed. That’s because it has significant value waiting to be unlocked. While I’m generally not a big fan of EV SPAC myself, Switchback Energy was not like the others. One way to play the EV space is to invest in a pick-and-shovel company for EV growth. ![]() If you want to invest in an emerging sector like EV, you may want to keep an eye on the level of risk that you are taking. And that helped make SPACs a popular route to go public. It is also from the EV space where many special purpose acquisition companies (SPAC) saw the opportunity to capitalize on the red-hot industry. Many electric vehicle (EV) manufacturers have gone public over the past year. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.ChargePoint (CHPT) Stock Is Trending Right Now, Here’s What To Know On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Certainly, this insider sale doesn’t help the bull case for shares. Until the economic backdrop changes, this is a stock I think investors are right to be concerned about. However, investors want profitability right now - and that’s something ChargePoint and its peers have struggled with. EV charging companies like ChargePoint, with strong market share and growth prospects, could outperform. It’s my view that the EV sector is going to have quite a strong and long runway for growth. Accordingly, with a number of experts citing CHPT stock as an example of a potential value trap, this large insider sale doesn’t necessarily signal to many retail investors that now’s the time to buy this deep-value pick. Zoom out to the time of this company’s initial public offering ( IPO) and it’s clear that investors who got in early haven’t been rewarded. This is increasingly true when a given insider sale is large and not spread over a significant amount of time.ĬhargePoint’s stock chart on a year-to-date (YTD) basis doesn’t look great. Insider selling activity can be a signal that investors take as a reason to steer clear of a particular stock. CHPT Stock Sinks as Investors Digest Potential Headwinds Let’s dive into what investors may want to make of ChargePoint in light of these factors. In September, Director Michael Linse made a rather big sale, discarding more than 2.3 million shares of CHPT stock at prices ranging between $5.70 and $5.74. Additionally, more recent concerns are arising from investors who may be watching insider selling activity. For one, if economic conditions deteriorate and electric vehicle (EV) adoption slows, the company’s business model could be under pressure. Per the survey, “sentiment is currently about 35% above the all-time historic low reached in June of 2022 but remains shy of the historical average reading of 86.”įor ChargePoint in particular, investors have a number of company-specific headwinds to contend with as well. That’s stoking concerns that higher rates could be translating into a rather depressed mood among consumers. ![]() On the macro front, the University of Michigan’s Index of Consumer Sentiment sunk 2.6% in September to 67.7 points. At the time of this writing, ChargePoint is down more than 6% as investors price in macro and company-specific headwinds. However, some companies in high-growth areas of the market, including ChargePoint (NYSE: CHPT), are down even more in today’s session - and CHPT stock isn’t even traded on the Nasdaq. ![]() Most growth stocks are seeing significant declines today as the Nasdaq Composite drops more than 1.5% in early afternoon trading.
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