Featured Volatile Stock: Blink Charging Co. (NASDAQ:BLNK)

shares of Blink Charging Co. (NASDAQ:BLNK) reached at $58.90 price level during last trade its distance from 20 days simple moving average was 28.72%, and its distance from 50 days simple moving average was 74.61% while it has a distance of 354.25% from the 200 days simple moving average.

Shares of stocks in the electric vehicle (EV) charging sector are moving higher Tuesday. The double-digit bounce was spurred by two different public comments made yesterday.

As of 11:30 a.m. EST, shares of two special purpose acquisition companies (SPACs) that will be merging with EV charging companies spiked. Shares of TPG Pace Beneficial Finance (NYSE:TPGY), which will be bringing EVBox public, were 15.3% higher. Climate Change Crisis Real Impact I Acquisition (NYSE:CLII), which is combining with EVgo, saw its shares rise 11.7%. Shares of Blink Charging (NASDAQ:BLNK) also jumped 18.7%.

So what

Last night, President Joe Biden signed a “Buy America” executive order, and highlighted his support for renewable energy at the same time. Biden said, “The federal government also owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America, by American workers.” The fleet of government-owned vehicles numbered 645,000 as of 2019, according to U.S. General Services Administration (GSA) data cited by Reuters.

Separately, CNBC stock picker Jim Cramer highlighted EV charging network stocks on his Mad Money show Monday night.

Now what

The U.S. government’s fleet included only 3,215 electric vehicles as of July 2020, according to the GSA data. Biden also said he planned to build 550,000 EV charging stations to aid the growing use of battery electric vehicles (BEVs). For perspective, Blink Charging currently has less than 16,000 public charging stations deployed in the U.S.

EVBox owns Europe’s largest EV charging station network, and has a total of over 200,000 charging ports in more than 70 countries worldwide. It also has a North American headquarters in Libertyville, Illinois, and recently brought its latest-generation charging stations to the U.S. and Canada. A buildout of stations in the U.S. could certainly benefit the company. It is for this reason that Cramer said he’d suggest buying shares in TPG Pace Beneficial. “If you want a charging station play, EVBox seems like the best of the bunch,” Cramer said on his show.

EVgo focuses on the specific niche of DC fast chargers (DCFCs) in the U.S., and currently has 50% market share, according to the company. These stations are best suited for commercial applications where consumers are on the go, such as shopping or dining.

If Biden’s support does result in a buildout of a nationwide network, it’s likely that all charging station companies will benefit. However, investors should research the details of the EV charging companies and decide for themselves whether a company’s focus area and its current valuation make it the right place for their money.

Liquidity:

The stock has a market cap of $1.97B with 31.38M shares outstanding, of which the float was 27.48M shares. Analysts consider this stock active, since it switched Trading volume reached 31,230,703 shares as compared to its average volume of 13.31M shares.

The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.

But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. BLNK’s relative volume was 2.70.

Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.

Blink Charging Co. has an average true range (ATR) of 5.83. Other technical indicators are worth considering in assessing the prospects for EQT. BLNK’s price to sales ratio for trailing twelve months was 437.82 and price to book ratio for most recent quarter was 88.15, whereas price to cash per share for the most recent quarter was 132.23.

The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 2.60. Analysts mean recommendation for the stock was 2.50. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Blink Charging Co.‘s shares owned by insiders remained 3.10%, whereas shares owned by institutional owners are 15.00%.

Meanwhile, BLNK traded under umbrella of Consumer Cyclical sector, the stock was traded 1.82% ahead of its 52-week high and 4612.00% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.

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