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.

Key Takeaways

  • 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.

Chart showing the share price performance of Blink Charging Co. (BLNK)
TradingView.com

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.

Tip

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.