CHPT Should I Buy
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ChargePoint Holdings Inc (CHPT) is not a strong buy for a beginner, long-term investor with $50,000-$100,000 available. While the company shows some growth in revenue and gross margin, the ongoing cash burn, declining net income, and bearish technical indicators make it a risky investment at this time. The absence of strong proprietary trading signals and mixed analyst ratings further support a cautious approach.
The technical indicators suggest a bearish trend. The MACD is positive but contracting, RSI is neutral at 35.186, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 5.614), but the overall trend remains weak.
Hedge funds are significantly increasing their positions, with a 212.50% increase in buying over the last quarter.
News highlights a 34% increase in EV charging sessions, indicating growing demand for charging infrastructure.
The company's gross margin improved by 34.41% YoY in Q3 2026.
Analysts have consistently lowered price targets, citing ongoing cash burn and EV penetration policy headwinds.
The stock has declined by 53.33% over the past year, reflecting weak market sentiment.
Financial performance shows a 32.36% YoY drop in net income and a 37.36% decline in EPS.
In Q3 2026, revenue increased by 6.09% YoY to $105.67M, and gross margin improved by 34.41% YoY to 30.74%. However, net income dropped by 32.36% YoY to -$52.48M, and EPS fell by 37.36% YoY to -2.23, indicating ongoing financial struggles.
Analysts have a mixed to cautious outlook on CHPT. Recent ratings include lowered price targets from UBS ($9), B. Riley ($11), Roth Capital ($8.50), and RBC Capital ($9). Goldman Sachs raised its target to $10 but maintains a Sell rating. Analysts highlight challenges such as cash burn, EV demand uncertainty, and the need for aggressive cost management.
