Blink Charging Stock Is Trending Today: What's Going On?

Blink Charging Co BLNK shares are trending on Monday after the company announced a restructuring plan that includes a 20% global workforce reduction.

What To Know: Blink, an EV charging equipment company, announced a strategic restructuring plan aimed at accelerating its BlinkForward initiatives and enhancing operational efficiency.

The plan includes a 20% cut to the company’s workforce that is expected to result in annualized savings exceeding $11 million. The company expects to incur $1 million to $1.5 million in related costs as a result of the adjustments due to cash severance and other severance benefits. The reduction in headcount is expected to be completed by the end of the third quarter.

“Today’s decisions, while challenging, are crucial for propelling our BlinkForward strategy and ensuring the long-term success of Blink,” said Mike Battaglia, president and CEO of Blink Charging.

“This restructuring is a proactive step to build a more efficient and robust organization, better aligned with our strategic goals and poised to lead in the next phase of our growth.”

The news comes as Blink faces challenges with product sales. Analysts at H.C. Wainwright & Co. recently lowered the price target for Blink from $8 to $5, citing sluggish product sales as a key concern. The analysts kept a Buy rating on the stock, expecting an increase in services revenue and potential monetization of the company’s ride-sharing business later this year.

Blink reported first-quarter financial results last week that came up short of analyst estimates. The company attributed a nearly 70% decline in product sales to an “uncertain economic climate impacting customers’ discretionary spending.”

Blink guided for a sequential revenue increase in the second quarter with continued growth in the second half of the year.

“The Company also remains focused on continuing to reduce operating expenses and cash burn across its business as it drives toward profitability. Blink expects to have improved visibility around its timeline to reach adjusted EBITDA profitability as the year progresses,” the company said in its earnings release.

BLNK Price Action: Blink Charging shares were bouncing around in early trading Monday, last down approximately 1.4%, trading around 74 cents, according to Benzinga Pro.

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