ChargePoint Holdings, Inc. (NYSE:CHPT) Given Average Rating of "Reduce" by Brokerages

Key Points

• Analysts remain cautious on ChargePoint: Eleven brokerages give the stock an average “Reduce” rating, with three sells, seven holds and one buy. The average 12-month price target is $8.31, below the recently cited trading price of $9.13.
• Recent quarterly performance improved: Revenue reached about $116.1 million, beating estimates, while gross margins strengthened and the adjusted EBITDA loss narrowed substantially year over year. Management guided for fiscal third-quarter revenue of $105 million to $115 million.
• Risks still include weak demand and ongoing losses: Analysts note that a sustained recovery in EV-charging demand is needed, while liquidity concerns and valuation volatility remain. Elevated short interest and options activity also appear to have amplified the stock’s sharp rally.

Shares of ChargePoint Holdings, Inc. (NYSE:CHPT - Get Free Report) have been given an average recommendation of "Reduce" by the eleven brokerages that are covering the firm, Marketbeat reports. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $8.3125.

A number of analysts have recently commented on CHPT shares. Weiss Ratings reissued a "sell (e+)" rating on shares of ChargePoint in a research note on Friday, July 17th. UBS Group reiterated a "neutral" rating and issued a $8.00 price objective (up from $7.00) on shares of ChargePoint in a report on Tuesday, June 23rd. Oppenheimer reiterated a "market perform" rating on shares of ChargePoint in a research report on Thursday. Royal Bank Of Canada reissued a "sector perform" rating and set a $6.50 target price on shares of ChargePoint in a report on Thursday, June 4th. Finally, TD Cowen restated a "hold" rating on shares of ChargePoint in a research report on Thursday.

ChargePoint Trading Up 75.9%

CHPT opened at $9.13 on Friday. The company's 50 day moving average is $5.87 and its 200-day moving average is $6.14. ChargePoint has a 1-year low of $4.44 and a 1-year high of $12.61. The company has a current ratio of 1.15, a quick ratio of 0.56 and a debt-to-equity ratio of 10.73. The company has a market cap of $222.95 million, a P/E ratio of -1.27 and a beta of 1.77.

ChargePoint (NYSE:CHPT - Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The company reported ($1.75) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.11) by ($0.64). ChargePoint had a negative return on equity of 723.17% and a negative net margin of 40.59%.The company had revenue of $101.82 million for the quarter, compared to analyst estimates of $95.64 million. Equities research analysts predict that ChargePoint will post -5.48 earnings per share for the current fiscal year.

Key Headlines Impacting ChargePoint

Here are the key news stories impacting ChargePoint this week:

• Positive Sentiment: Quarterly results exceeded expectations. ChargePoint reported revenue of approximately $116.1 million, up about 18% year over year and above estimates near $105 million. Its adjusted loss was materially narrower than expected, while the reported GAAP loss was also better than consensus. ChargePoint shares surge after narrower quarterly loss
• Positive Sentiment: Profitability metrics improved. Gross margin reached 36% on a GAAP basis and 38% on a non-GAAP basis, while the adjusted EBITDA loss narrowed to $4.8 million from $22.1 million a year earlier. The improvement supports the investment case that ChargePoint is moving toward better operating leverage. ChargePoint jumps after revenue beat and margin improvement spark likely short-covering
• Positive Sentiment: Near-term guidance was broadly reassuring. Fiscal third-quarter revenue guidance of $105 million to $115 million, with a midpoint around $110 million, was slightly above analyst expectations and suggests management expects demand to hold relatively steady. CEO Rick Wilmer described the rally as the beginning of renewed momentum and expressed optimism about the company’s outlook. ChargePoint CEO says stock surge is the beginning of momentum
• Positive Sentiment: Trading dynamics amplified the move. Elevated short interest may have triggered short-covering after the earnings beat, while call-option activity was roughly 180% above its average daily volume, adding speculative demand.
• Neutral Sentiment: Needham reaffirmed its “hold” rating, and recent analyst price targets have a median of $7, below the current trading level cited in the reports.
• Negative Sentiment: Demand remains the key risk. RBC Capital Markets said ChargePoint needs a recovery in demand for EV charging systems to sustain its outlook. Commentary characterized the rally as potentially worth selling, reflecting concerns over persistent losses, liquidity and intense valuation volatility despite the quarterly beat. ChargePoint outlook weighed down by slowing charging demand

Insider Buying and Selling at ChargePoint

In other ChargePoint news, CFO Mansi Khetani sold 8,152 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 $58,123.76. Following the transaction, the chief financial officer directly owned 179,348 shares of the company's stock, valued at approximately $1,278,751.24. The trade was a 4.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Vice sold 4,072 shares of the stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $7.13, for a total value of $29,033.36. Following the completion of the sale, the insider directly owned 171,507 shares of the company's stock, valued at approximately $1,222,844.91. The trade was a 2.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 29,164 shares of company stock worth $208,037. Company insiders own 4.20% of the company's stock.

Institutional Trading of ChargePoint

Institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its holdings in ChargePoint by 6,429.1% during the 1st quarter. AQR Capital Management LLC now owns 2,679,217 shares of the company's stock worth $1,553,000 after purchasing an additional 2,638,182 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of ChargePoint by 61.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,790,823 shares of the company's stock valued at $2,293,000 after purchasing an additional 1,448,114 shares during the last quarter. Brevan Howard Capital Management LP acquired a new stake in shares of ChargePoint during the second quarter worth $517,000. Qube Research & Technologies Ltd acquired a new stake in shares of ChargePoint during the second quarter worth $518,000. Finally, Two Sigma Securities LLC raised its stake in ChargePoint by 4,060.7% during the second quarter. Two Sigma Securities LLC now owns 679,693 shares of the company's stock worth $478,000 after buying an additional 663,357 shares during the last quarter. 37.77% of the stock is currently owned by institutional investors.

About ChargePoint

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.

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