EVgo (NASDAQ:EVGO) Stock Crosses Above 50-Day Moving Average – Should You Sell?

EVgo Inc. (NASDAQ:EVGO)’s share price passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $1.31 and traded as high as $1.95. EVgo shares last traded at $1.85, with a volume of 72,115,711 shares changing hands.

Key Stories Impacting EVgo

Here are the key news stories impacting EVgo this week:

• Positive Sentiment: LS Power, which controls approximately 56% of EVgo’s combined voting power, proposed purchasing the remaining Class A shares for $2.00 per share in cash. The offer represents a substantial premium to EVgo’s recent trading levels and drove the stock’s strongest advance in roughly two years. EVgo Confirms Receipt of Unsolicited and Non-Binding Take Private Proposal
• Positive Sentiment: Reports said EVgo agreed to be acquired by LS Power for $2 per share, reinforcing takeover speculation and helping the stock approach the proposed consideration. EVgo Agrees to Be Acquired by LS Power Equity Advisors for $2 a Share
• Positive Sentiment: JPMorgan upgraded EVgo from Underweight to Neutral, reducing a source of selling pressure and signaling that the risk-reward profile has improved following the takeover proposal. JPMorgan Upgrades EVgo to Neutral From Underweight
• Neutral Sentiment: Unusually heavy call-option buying indicated speculative bullish positioning, with call volume about 320% above typical levels, but it does not guarantee a transaction or sustained gains.
• Negative Sentiment: EVgo’s proposal is officially described as unsolicited and non-binding, so shareholder approval, negotiations and other conditions could prevent or delay a completed deal. EVgo Acknowledges Receipt of Take Private Proposal
• Negative Sentiment: Separate earnings coverage warned that a strong charging business may not offset a guidance reduction, while analysts expected a decline in earnings. This keeps operational execution and future profitability as risks if takeover enthusiasm fades. EVgo’s Q3 Report Tests Whether A Strong Charging Business Can Offset A Guidance Cut

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. JPMorgan Chase & Co. lowered shares of EVgo from a “neutral” rating to an “underweight” rating in a research note on Tuesday, July 21st. Needham & Company LLC reissued a “hold” rating on shares of EVgo in a report on Wednesday, August 5th. Weiss Ratings raised shares of EVgo from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 6th. UBS Group reissued a “buy” rating on shares of EVgo in a research report on Wednesday, October 7th. Finally, Stifel Nicolaus reduced their target price on EVgo from $7.00 to $6.00 and set a “buy” rating for the company in a research note on Tuesday, August 25th. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $2.93.

EVgo Stock Up 46.8%

The company has a current ratio of 2.19, a quick ratio of 2.19 and a debt-to-equity ratio of 5.39. The company has a market capitalization of $581.86 million, a PE ratio of -4.62 and a beta of 2.87. The business’s 50-day simple moving average is $1.31 and its 200-day simple moving average is $1.93.

EVgo (NASDAQ:EVGO) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.15) EPS for the quarter, beating the consensus estimate of ($0.18) by $0.03. The business had revenue of $82.65 million during the quarter. EVgo’s revenue was down 15.7% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.10) earnings per share. As a group, equities research analysts anticipate that EVgo Inc. will post -0.50 EPS for the current fiscal year.

Institutional Investors Weigh In On EVgo

Several hedge funds have recently added to or reduced their stakes in the business. Kintra Wealth LLC purchased a new stake in shares of EVgo in the second quarter worth about $25,000. Y Intercept Hong Kong Ltd acquired a new stake in EVgo during the first quarter worth about $60,000. Royal Bank of Canada grew its holdings in EVgo by 94.4% during the first quarter. Royal Bank of Canada now owns 41,038 shares of the company’s stock worth $70,000 after acquiring an additional 19,929 shares during the period. Cetera Investment Advisers raised its position in EVgo by 46.3% during the first quarter. Cetera Investment Advisers now owns 42,683 shares of the company’s stock valued at $73,000 after acquiring an additional 13,499 shares in the last quarter. Finally, J. Derek Lewis & Associates Inc. raised its position in EVgo by 59.3% during the first quarter. J. Derek Lewis & Associates Inc. now owns 43,000 shares of the company’s stock valued at $74,000 after acquiring an additional 16,000 shares in the last quarter. 17.44% of the stock is owned by hedge funds and other institutional investors.

About EVgo

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.