What's Going On With ChargePoint (CHPT) Shares

ChargePoint Holdings Inc CHPT shares are trading lower by 7.9% to $1.74 Friday, pulling back following strength earlier this week. Earlier this week, ChargePoint saw gains following the Federal Reserve’s decision to maintain interest rates at a range of 5.25% to 5.5%.

The Federal Reserve announced its plan to implement three rate cuts in 2024, aiming for a target midpoint range of 4.6% by year-end, in line with its strategy outlined in December 2023.

However, dissent exists among board members, with nine out of nineteen officials projecting policy rates higher than the median forecast, reflecting a notable division on the speed of future rate adjustments…Read More

Why This Matters To CHPT Investors

The Federal Reserve’s decision to keep interest rates unchanged and potentially lower them in the future is generally positive for growth-oriented companies like ChargePoint. In general, lower interest rates stimulate economic activity and consumer spending, which could translate into increased adoption of electric vehicles and, consequently, the use of ChargePoint’s charging infrastructure.

The upward revision of economic growth projections for 2024 indicates a potentially healthier economy. This could positively impact ChargePoint’s stock as it suggests greater potential for electric vehicle adoption and the demand for charging infrastructure.

Is CHPT A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like ChargePoint Hldgs‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. ChargePoint does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 19.67%, you'll need to buy a share of Dividend Gwth Split by the Mar. 27, 2024. Once done, you can expect to receive a nominal payout of $0.1 on Apr. 12, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on ChargePoint Hldgs will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CHPT has a 52-week high of $10.71 and a 52-week low of $1.56.