ChargePoint Holdings, Inc. (CHPT), a provider of electric vehicle (EV) charging stations, announced a 12 million secondary offering of its shares by selling stockholders. Shares dipped almost 6% in the after-hours trading session following the news, after closing the day up 3.4% at $28.84 on July 12.
The offering has not yet become effective, and the stockholders intend to give the underwriters a 30-day option to purchase up to an additional 1.8 million shares. All of the proceeds from the offering will be received by the selling stockholders. (See ChargePoint Holdings stock charts on TipRanks)
Recently Needham analyst Vikram Bagri assigned a Buy rating to the stock with a price target of $39, implying 35.2% upside potential to current levels.
After a discussion with the company’s top brass, Bagri noted that it was unlikely that Michael Linse, the company’s largest shareholder, would reduce his ownership stake by a large amount all at once, as he was a strong supporter of the company.
Based on 5 unanimous Buys, the stock has a Strong Buy consensus rating. The average ChargePoint price target of $37.20 implies 29% upside potential to current levels. Shares have gained 186.7% over the past year.