ChargePoint Holdings Inc CHPT is in the red today, shedding 6.3% to hit $1.86 this afternoon in response to UBS analyst Robert Jamieson‘s downgrade from Buy to Neutral, along with a price target downgrade from $9 to $2.25.
The company has sunk to a historic low in November, plunging 43% since November 15th. This steep decline follows the release of preliminary third-quarter results and the announcement of a new CEO.
Cause of the Decline
In the third quarter of fiscal year 2024, ChargePoint reported revenue below expectations due to various factors such as market pressures, delivery delays, and economic conditions in North America and Europe. Revenue is expected to range from $108 million to $113 million, significantly below the original forecast of $150 million to $165 million.
The new CEO, Rick Wilmer, is looking to streamline operations by adjusting inventory and fortifying the business. Preliminary figures indicate a decline in revenue, non-cash impairment charges affecting gross margins, and adjustments in operating expenses.
ChargePoint states that its cash position and credit facilities appear stable, but this snapshot might change as final financial procedures wrap up, leading to potentially significant alterations in the reported numbers.
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CHPT has a 52-week high of $13.65 and a 52-week low of $1.95, as per data from Benzinga Pro.