Our newest technical analysis of ChargePoint Holdings (USA Stocks:CHPT)
 | By Raphi Shpitalnik | Macroaxis Story |
Every cloud has a silver lining, and in the world of investing, ChargePoint Holdings (US Stocks: CHPT) might just be that hidden gem. As a key player in the Consumer Cyclical sector, ChargePoint has been making waves on the NYSE since its IPO on the 16th of September 2019. Despite a challenging financial year, with a net income loss from continuing operations of $344.5M and an income before tax loss of $347.3M, the company's stock technicals present a promising investment opportunity. ChargePoint's 52-week high stands at $14.15, while its 52-week low is at $2.385. The stock's 50-day moving average (MA) is $4.2316, and its 200-day MA is $7.9586. These figures indicate a significant volatility, which is further confirmed by a beta of 1.801. However, this volatility could also signal potential for high returns for risk-tolerant investors. The company's shares short prior month were 73.6M, with a short ratio of 3.38, indicating a bearish sentiment among investors. However, with 12 strong buy recommendations out of 17 analyst estimates, and a Wall Street target price of $10.51, there's a clear indication that the tide may be turning for ChargePoint. The analyst's highest estimated target price stands at $17, offering a possible upside price of $8.15. In conclusion, while ChargePoint's financials may raise eyebrows, its stock technicals suggest a promising investment opportunity. As always, potential investors should conduct their own due diligence before making any investment decisions. Given the enthusiasm many millennials have for the electrical equipment sector, it seems appropriate to evaluate ChargePoint Holdings in the context of current market trends. There are several intriguing factors that could potentially drive a full recovery. Much of the company's stock price movement has been reflective of broader market trends. The stability of the firm's basic indicators suggests potential short-term price fluctuations for private investors in ChargePoint. ChargePoint Holdings is set to announce its earnings today, with the next quarterly report expected on December 7, 2023.
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Reviewed by Rifka Kats
ChargePoint Holdings (US Stocks: CHPT) has been a topic of interest in the investment community, especially given its recent performance. From a technical perspective, the stock has a Jensen Alpha of -1.33, indicating a negative expected return when the market is up. The company's Mean Deviation stands at 3.38, suggesting a high level of volatility. The Total Risk Alpha of -1.15 further underscores the risk associated with this investment. However, the Wall Street Target Price is $10.51, indicating a potential upside of 6.57, which could make it a promising investment opportunity for risk-tolerant investors. It's important to note that the company reported a net income loss of $344.5M from continuing operations, which could impact its financial stability.
Key Takeaways
The average rating for ChargePoint Holdings is a 'Buy', as determined by 18 analysts. Is this consensus based on technical analyses? It's important to understand that traditional technical analysis typically utilizes price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on the market sentiment of ChargePoint Holdings, which reflects investors' perception of the company's future value. Let's delve into a few aspects of the technical analysis for ChargePoint Holdings.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of ChargePoint Holdings. In general, sophisticated investors focus on analyzing ChargePoint Holdings stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build ChargePoint Holdings's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of ChargePoint Holdings's intrinsic value. In addition to deriving basic predictive indicators for ChargePoint Holdings, many experienced traders also check how macroeconomic factors affect ChargePoint Holdings price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Watch out for price decline
Please consider monitoring ChargePoint Holdings on a daily basis if you are holding a position in it. ChargePoint Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as ChargePoint Holdings stock to be traded above the $1 level to remain listed. If ChargePoint Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is ChargePoint Holdings's Liquidity
ChargePoint Holdings financial leverage refers to using borrowed capital as a funding source to finance ChargePoint Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ChargePoint Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ChargePoint Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ChargePoint Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ChargePoint Holdings's total debt and its cash.
ChargePoint Holdings Gross Profit
ChargePoint Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ChargePoint Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ChargePoint Holdings Gross Profit growth over the last 10 years. Please check ChargePoint Holdings' gross profit and other fundamental indicators for more details.
Going after ChargePoint Financials
ChargePoint Holdings has a beta of 3.3343. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, ChargePoint Holdings will likely underperform. The beta indicator helps investors understand whether ChargePoint Holdings moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if ChargePoint deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity reported the previous year's revenue of 468.09 M. Net Loss for the year was (344.46 M) with profit before overhead, payroll, taxes, and interest of 86.19 M.Every cloud has a silver lining, and the cloud over ChargePoint Holdings (US Stocks: CHPT) may just be hiding a promising investment opportunity. Despite a net income loss of $344.5M and a debt to equity ratio of 0.82%, the company has shown resilience with a working capital of 419.98M and total assets valued at 1.08B. The company's shares are also largely owned by institutions, accounting for 54.63% of the total shares. Furthermore, the company's 52-week high stands at $14.15, indicating potential for significant upside from the current market price. However, potential investors should note the company's high probability of bankruptcy at 70.65%. In conclusion, while ChargePoint Holdings presents a potentially lucrative opportunity, it also carries substantial risk, necessitating careful consideration and risk management. .
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