Blink Charging Co. (BLNK) shares rose more than 15% during Tuesday's session after the company announced that it has sold or deployed 539 electric vehicle (EV) charging stations in the United States and internationally during the COVID-19 lockdowns between June and August 2020.
- Blink Charging shares moved sharply higher after the company announced that it sold or deployed 539 EV chargers around the world.
- The growth in EV chargers represents a nearly 100% year-over-year increase, with a focus on multi-family residential properties in California.
- The move comes after Mariner Research questioned management's track record and issued a price target of $1 per share.
The company's progress in selling and deploying new EV charging stations represents a nearly 100% year-over-year increase. Multi-family residential accounted for nearly 40% of all new locations, followed by education, automotive, and health care locations. In addition, California represents about 40% of all installations aside from the 1,250 units.
The move higher comes after Mariner Research questioned management's track record, suggested that its underlying products don't justify a 46x FY2020 revenue multiple, and issued a $1 base-case price target in August. Management denied the allegations and implications, saying that it stands by the data provided and described in its public SEC filings.
From a technical standpoint, Blink Charging Co. stock broke out from the 50-day moving average at $8.29 toward its prior highs. The relative strength index (RSI) rose toward overbought levels with a reading of 62.31, but the moving average convergence divergence (MACD) experienced a bullish crossover. These indicators suggest that the stock has more room to run but could see some near-term consolidation when the RSI reaches above the 70 level.
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.
Traders should watch for a continued move higher to retest prior highs before seeing some consolidation. If the stock breaks out from those levels, traders could see a move toward trendline resistance at around $21.00 over the long term. If the stock breaks down, traders could see a retest of trendline support at around $6.50 over the coming sessions.
The Bottom Line
Blink Charging shares moved sharply higher after the company announced a 100% year-over-year increase in the number of EV chargers deployed worldwide. While the stock has some more room to run, traders could see some near-term consolidation.
The author holds no position in the stock(s) mentioned except through passively managed index funds.