Why ChargePoint Stock Hit A New All-Time Low Today

ChargePoint Holdings Inc CHPT shares are down 4.6% to $2.50 on Thursday, despite no apparent company-specific news for the day or the week. The stock may be falling amid recent, broader weakness in the EV sector. 

A recent, marked rise in Treasury yields has also weighed on growth stocks.

ChargePoint's stock has plunged by 50% in the last month, primarily due to the company's announcement about commitments from institutional investors, including the lead investor of their $300 million convertible notes issued in April 2022.

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What Happened Earlier This Month?

ChargePoint's stock declined in October as institutional investors committed to purchasing $175 million in common stock through an "at-the-market" offering.

To support their goal of achieving adjusted EBITDA profitability by the following year, the company raised $57 million in the third fiscal quarter of 2024 and secured a $150 million revolving credit facility.

Additionally, ChargePoint plans to modify the terms of their notes with the lead investor, involving changes like extending the maturity date, increasing the cash coupon, raising the payment in kind coupon, and adjusting the conversion price.

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Why This Matters To CHPT Investors

Securing capital through stock offerings and credit facilities can support a company's expansion, yet it might raise investor apprehensions, potentially resulting in a pessimistic sentiment and a declining stock value.

Similarly, modifying the terms of notes with a principal investor, such as extending maturity, raising coupon rates and adjusting conversion prices, could be viewed as a sign of financial pressure, eroding investor trust.

According to data from Benzinga Pro, ChargePoint has a 52-week high of $14.62 and a 52-week low of $2.45.