ChargePoint (NYSE:CHPT) Stock Price Expected to Rise, B. Riley Financial Analyst Says

Key Points

• B. Riley Financial raised ChargePoint’s price target from $6 to $8 but maintained a neutral rating; the broader analyst consensus remains “Reduce,” with an average target of $8.56.
• ChargePoint shares rose 6.9% to $9.71 after the company reported quarterly revenue of $116.1 million, surpassing expectations, while its adjusted EBITDA loss narrowed significantly year over year.
• Despite improved revenue and margins, ChargePoint remains unprofitable, with a negative net margin and analysts forecasting a full-year loss; insiders have also sold shares in recent months.

ChargePoint (NYSE:CHPT - Get Free Report) had its target price hoisted by equities researchers at B. Riley Financial from $6.00 to $8.00 in a research report issued on Friday, Benzinga reports. The firm currently has a "neutral" rating on the stock. B. Riley Financial's price target would suggest a potential downside of 17.57% from the stock's previous close.

A number of other research analysts also recently issued reports on CHPT. Needham & Company LLC restated a "hold" rating on shares of ChargePoint in a research note on Thursday. TD Cowen reissued a "hold" rating on shares of ChargePoint in a report on Thursday. Oppenheimer restated a "market perform" rating on shares of ChargePoint in a research report on Thursday. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of ChargePoint in a research report on Friday, July 17th. Finally, B Riley reaffirmed a "neutral" rating on shares of ChargePoint in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $8.56.

ChargePoint Stock Up 6.9%

Shares of CHPT traded up $0.62 during trading hours on Friday, reaching $9.71. 10,484,146 shares of the stock traded hands, compared to its average volume of 858,450. ChargePoint has a 52 week low of $4.44 and a 52 week high of $12.61. The company has a market cap of $237.00 million, a price-to-earnings ratio of -1.35 and a beta of 1.77. The stock has a fifty day simple moving average of $5.87 and a 200 day simple moving average of $6.14. The company has a current ratio of 1.15, a quick ratio of 0.56 and a debt-to-equity ratio of 10.73.

ChargePoint (NYSE:CHPT - Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The company reported ($1.35) EPS for the quarter, beating the consensus estimate of ($1.43) by $0.08. ChargePoint had a negative net margin of 40.59% and a negative return on equity of 723.17%. The firm had revenue of $116.08 million during the quarter, compared to analyst estimates of $105.43 million. On average, equities analysts forecast that ChargePoint will post -5.48 EPS for the current year.

Insider Buying and Selling at ChargePoint

In other ChargePoint news, insider John Vice sold 4,072 shares of the company's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $7.13, for a total transaction of $29,033.36. Following the sale, the insider directly owned 171,507 shares of the company's stock, valued at $1,222,844.91. This represents a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Eric Batill sold 4,979 shares of ChargePoint stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $7.13, for a total transaction of $35,500.27. Following the completion of the transaction, the general counsel owned 143,631 shares of the company's stock, valued at $1,024,089.03. The trade was a 3.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 29,164 shares of company stock valued at $208,037 in the last three months. 4.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On ChargePoint

Several hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in ChargePoint by 6,429.1% during the first quarter. AQR Capital Management LLC now owns 2,679,217 shares of the company's stock valued at $1,553,000 after acquiring an additional 2,638,182 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in ChargePoint by 61.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,790,823 shares of the company's stock worth $2,293,000 after purchasing an additional 1,448,114 shares in the last quarter. Brevan Howard Capital Management LP bought a new position in ChargePoint in the 2nd quarter valued at $517,000. Qube Research & Technologies Ltd bought a new position in ChargePoint in the 2nd quarter valued at $518,000. Finally, Two Sigma Securities LLC grew its position in shares of ChargePoint by 4,060.7% during the 2nd quarter. Two Sigma Securities LLC now owns 679,693 shares of the company's stock valued at $478,000 after purchasing an additional 663,357 shares in the last quarter. 37.77% of the stock is currently owned by institutional investors.

More ChargePoint News

Here are the key news stories impacting ChargePoint this week:

• Positive Sentiment: ChargePoint reported quarterly revenue of approximately $116.1 million, up 17.7% year over year and well above analyst expectations near $105 million. Its adjusted loss was also narrower than expected, while the GAAP loss of $1.35 per share modestly exceeded the consensus estimate for a $1.43 loss. ChargePoint shares surge after narrower quarterly loss
• Positive Sentiment: Profitability trends improved: GAAP gross margin reached 36%, non-GAAP gross margin 38%, and adjusted EBITDA loss narrowed to $4.8 million from $22.1 million a year earlier. Investors are responding to the potential for further losses to decline and eventual positive EBITDA. ChargePoint jumps after revenue beat and margin improvement
• Positive Sentiment: Fiscal third-quarter revenue guidance of $105 million to $115 million, with a midpoint of $110 million, was slightly better than analysts’ forecast. New products and momentum in Europe are helping offset uncertainty in North America. CHPT Q2 Deep Dive
• Positive Sentiment: Elevated short interest may have amplified the earnings reaction through short-covering. Unusually heavy call-option activity also indicates increased speculative interest in CHPT. Short-covering analysis

ChargePoint Company Profile

ChargePoint NYSE: CHPT is a leading provider of electric vehicle (EV) charging solutions that designs, develops and markets charging hardware, software and services. The company's portfolio includes Level 2 AC charging stations for residential, commercial and fleet applications, as well as DC fast charging systems suited for retail, hospitality and public use. ChargePoint's integrated platform enables site hosts to manage charging infrastructure through cloud-based monitoring, analytics and billing tools, while EV drivers access and control charging sessions via a mobile app or RFID card.

Since its founding in 2007 and headquarters in Campbell, California, ChargePoint has built one of the largest open EV charging networks in the world.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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