Stock Analysis

Even at the Lows, Insider Selling Remains Prevalent at ChargePoint (NYSE: CHPT)

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Major infrastructure changes are inevitable with the automotive industry ramping up EV vehicle production. This trend shift made way for companies like ChargePoint Holdings, Inc. (NYSE: CHPT), positioning them as one of the US leaders in this growing market. Yet, the stock has not done well in 2021, losing almost half its value.

View our latest analysis for ChargePoint Holdings

Q3 Earnings results

  • GAAP EPS: -US$0.21
  • Revenue: US$65.03M
  • Revenue growth: 78.8% Y/Y

For Q4, the company expects revenue of US$73-78m, while the full-year revenue outlook is set at US$235-240m (vs. the previous US$225-235m).

The company noted that the subscription revenue rose 24% in the quarter, while the networked charging systems brought 73% of total revenue (US$48m). The current cash balance stands at US$366m after the acquisition of the leading commercial vehicle management provider, ViriCiti.

Although North America remains the core market, the company has been growing its revenue in Europe.

ChargePoint Revenue Diversity Source: Q3 Presentation

CEO Pasquale Romano reflected on the developments, stating that the company crossed the number of 290,000 roaming ports accessible to drivers with ChargePoint accounts. He also stated that the drivers avoided over 132 million gallons of gasoline by their estimates, reducing the greenhouse gas emissions output by over 529,000 metric tons.

ChargePoint Holdings Insider Transactions Over The Last Year

The President, Pasquale Romano, made the biggest insider sale in the last 12 months. That single transaction was for US$7.4m worth of shares at US$23.50 each. So we know that an insider sold shares at around the present share price of US$21.78. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. This sale took place at around the current price, so it isn't a major concern.

Insiders in ChargePoint Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year.

By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE: CHPT Insider Trading Volume December 8th, 2021

If you like to buy stocks that insiders are buying rather than selling, then you might love this free list of companies. (Hint: insiders have been buying them).

Insiders at ChargePoint Holdings Have Sold Stock Recently

The last three months saw significant insider selling at ChargePoint Holdings. Specifically, insiders ditched US$4.9m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap, although the stock has been down for the entirety of the year.

Does ChargePoint Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. High insider ownership often makes company leadership more mindful of shareholder interests.

ChargePoint Holdings insiders own about US$134m worth of shares (which is 1.9% of the company). Most shareholders would be happy to see this sort of insider ownership since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At ChargePoint Holdings Tell Us?

Insiders sold stock recently, but they haven't been buying. Our data doesn't show any insider buying in the last twelve months. While insiders own shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company.

Despite the fact that insiders often sell shares in recently listed, high-growth companies, the ChargePoint situation concerns us due to one simple fact. The stock has been down for the entirety of 2021, losing 50% of its value at one point. Still, even that heavy discount didn't trigger any insider buying.

While we like knowing what's going on with the insider's ownership and transactions, we also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that ChargePoint Holdings has 3 warning signs, which would be unwise to ignore.

Of course, ChargePoint Holdings may not be the best stock to buy. So you may wish to see this free collection of high-quality companies.

For this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether ChargePoint Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Simply Wall St analyst Stjepan Kalinic and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Stjepan Kalinic

Stjepan Kalinic

Stjepan is a writer and an analyst covering equity markets. As a former multi-asset analyst, he prefers to look beyond the surface and uncover ideas that might not be on retail investors' radar. You can find his research all over the internet, including Simply Wall St News, Yahoo Finance, Benzinga, Vincent, and Barron's.


ChargePoint Holdings

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the United States and internationally.

Mediocre balance sheet and slightly overvalued.