ChargePoint Holdings, Inc. CHPT has witnessed a sharp decline in its stock value, with shares trading lower by more than 20% over the past week. Let’s delve into what has been driving this downturn and what investors should take note of.
Key Developments:
ChargePoint recently unveiled a strategic reorganization aimed at bolstering its financial performance and fortifying its position for long-term expansion. As part of this initiative, the company has implemented an approximately 12% reduction in its global workforce.
This move is anticipated to yield annual operating expense savings of approximately $33 million, albeit it will be accompanied by restructuring charges totaling roughly $14 million, encompassing severance and related expenses.
In terms of its financial standing, the company has reiterated its cash position of approximately $397 million, with access to an additional $150 million through an untapped revolving credit facility. Additionally, ChargePoint has reaffirmed its objective to achieve a positive non-GAAP adjusted EBITDA in the fourth quarter of calendar year 2024.
Notably, the stock has plummeted more than 20% subsequent to the company’s announcement. Data from Benzinga Pro indicates that the stock is currently trading below its 50-day moving average of $2.37, and 22.92% of its available shares are being sold short.
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CHPT Price Action: According to Benzinga Pro, ChargePoint Holdings shares are down 4.72% at $1.715 at the time of publication.
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