Why ChargePoint Stock Hit A New All-Time Low Today

ChargePoint Holdings Inc CHPT shares are trading lower by 11% to $3.24 Wednesday afternoon, marking a new all-time low, despite a lack of company-specific news for the session. The stock may be falling amid broader weakness in the EV sector. A rise in Treasury yields Wednesday has also weighed on growth stocks.

ChargePoint's stock has experienced a substantial 40% decline in the past month. This decline was largely triggered by the company's announcement regarding commitments from institutional investors, notably the lead investor of their $300 million convertible notes issued in April 2022.

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What Happened?

ChargePoint's stock has recently declined due to institutional investors committing to buy $175 million in common stock through an "at-the-market" offering.

The company raised $57 million in the third fiscal quarter of 2024, along with a $150 million revolving credit facility, to support their goal of achieving adjusted EBITDA profitability by the fourth fiscal quarter of the following year.

They are also planning to modify the terms of their notes with the lead investor, including 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

Raising capital through stock offerings and credit facilities can support a company's growth but may raise concerns for investors, potentially leading to a negative sentiment and a declining stock price.

Changing the terms of notes with a lead investor, such as extending maturity, increasing coupon rates and adjusting conversion prices, can also be seen as a sign of financial stress, eroding investor confidence.

According to data from Benzinga Pro, ChargePoint has a 52-week high of $14.62 and a 52-week low of $3.24.