Investors Purchase Large Volume of EVgo Call Options (NASDAQ:EVGO)

EVgo Inc. (NASDAQ:EVGO) was the target of unusually large options trading activity on Monday. Investors acquired 4,024 call options on the company. This represents an increase of approximately 320% compared to the typical daily volume of 959 call options.

Key Stories Impacting EVgo

Here are the key news stories impacting EVgo this week:

• Positive Sentiment: LS Power Equity Advisors and affiliates, which control approximately 56% of EVgo’s combined voting power, offered to buy the Class A shares they do not already own for $2.00 each. The proposal represents a potential premium to EVgo’s recent trading levels and establishes a near-term valuation reference. EVgo Confirms Receipt of Unsolicited and Non-Binding Take Private Proposal
• Positive Sentiment: The takeover proposal triggered significant buying interest, including unusually heavy call-option activity, suggesting that traders are positioning for further upside or increased deal-related volatility. EVgo Buyout Offer Coverage
• Neutral Sentiment: JPMorgan upgraded EVgo from “underweight” to “neutral,” indicating a less-negative view but not a bullish recommendation. JPMorgan Upgrades EVgo to Neutral
• Negative Sentiment: Cantor Fitzgerald downgraded EVgo from “overweight” to “neutral” and cut its price target from $3.00 to $2.00, limiting the perceived upside outside the takeover proposal. Cantor Fitzgerald EVgo Rating
• Negative Sentiment: Investors are also awaiting quarterly results amid expectations for declining earnings and a potential guidance cut. EVgo’s underlying operating performance therefore remains a risk if the takeover discussions do not progress.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Kintra Wealth LLC purchased a new stake in EVgo during the second quarter valued at approximately $25,000. Y Intercept Hong Kong Ltd purchased a new position in shares of EVgo in the 1st quarter worth approximately $60,000. Royal Bank of Canada boosted its holdings in shares of EVgo by 94.4% in the 1st quarter. Royal Bank of Canada now owns 41,038 shares of the company’s stock worth $70,000 after purchasing an additional 19,929 shares during the period. Cetera Investment Advisers increased its position in shares of EVgo by 46.3% during the 1st quarter. Cetera Investment Advisers now owns 42,683 shares of the company’s stock valued at $73,000 after purchasing an additional 13,499 shares during the last quarter. Finally, J. Derek Lewis & Associates Inc. grew its holdings in EVgo by 59.3% during the 1st quarter. J. Derek Lewis & Associates Inc. now owns 43,000 shares of the company’s stock valued at $74,000 after purchasing an additional 16,000 shares during the last quarter. Institutional investors own 17.44% of the company’s stock.

EVgo Stock Performance

Shares of NASDAQ EVGO opened at $1.82 on Tuesday. The stock has a market cap of $573.99 million, a PE ratio of -4.61 and a beta of 2.87. The company has a debt-to-equity ratio of 5.39, a current ratio of 2.19 and a quick ratio of 2.19. EVgo has a 1 year low of $0.98 and a 1 year high of $3.92. The firm has a fifty day moving average price of $1.31 and a 200-day moving average price of $1.93.

EVgo (NASDAQ:EVGO) last issued its earnings results on Wednesday, August 5th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.18) by $0.03. The firm had revenue of $82.65 million during the quarter. The company’s revenue was down 15.7% on a year-over-year basis. During the same quarter last year, the business earned ($0.10) earnings per share. Equities analysts anticipate that EVgo will post -0.50 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several brokerages recently commented on EVGO. Stifel Nicolaus cut their price objective on shares of EVgo from $7.00 to $6.00 and set a “buy” rating on the stock in a research report on Tuesday, August 25th. UBS Group reiterated a “buy” rating on shares of EVgo in a research report on Wednesday, October 7th. Morgan Stanley set a $2.50 target price on EVgo in a research report on Thursday, August 6th. Cantor Fitzgerald downgraded EVgo from an “overweight” rating to a “neutral” rating and cut their price target for the company from $3.00 to $2.00 in a research note on Tuesday. Finally, JPMorgan Chase & Co. lowered shares of EVgo from a “neutral” rating to an “underweight” rating in a research report on Tuesday, July 21st. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $2.79.

EVgo Company Profile

EVgo, Inc (NASDAQ: EVGO) operates a public electric vehicle charging network in the United States. The company develops, owns and operates fast-charging stations designed primarily for passenger vehicles, providing drivers with access to charging at shopping centers, grocery stores, retail locations, workplaces and other convenient destinations.

EVgo’s services include on-demand charging through its network and mobile app, as well as features such as payment processing, station availability information and vehicle-to-charger connectivity.