Evgo CEO Badar Khan sells $856,232 in company stock

EVgo Inc. (NASDAQ:EVGO) recently disclosed a series of stock transactions by its Chief Executive Officer, Badar Khan. According to the SEC filing, Khan sold a total of 166,725 shares of EVgo's Class A Common Stock on November 14, 2024. The shares were sold at a weighted average price of $5.1356, amounting to a total transaction value of approximately $856,232.

The filing also detailed that on November 13, 2024, Khan acquired a substantial number of shares through the exercise of restricted stock units (RSUs) and performance-based restricted stock units (PRSUs). These exercises resulted in a net gain of 340,256 shares, although these transactions did not involve any cash exchange, as the RSUs and PRSUs were awarded under EVgo's 2021 Long Term Incentive Plan.

These transactions were conducted under Khan's 10b5-1 trading plan, which was adopted on June 10, 2024. This plan includes provisions for mandatory sales to cover tax withholding obligations related to the vesting of stock units.

In other recent news, EVgo has reported record Q3 revenue of $68 million, marking a significant year-over-year increase. This achievement has been attributed to the company's seventh consecutive quarter of throughput doubling and an 18% increase in sites with six or more charging stalls. In addition, EVgo has announced strategic partnerships with GM and Delta Electronics to develop advanced charging technology and flagship sites.

Recent developments also include a conditional $1.05 billion loan guarantee from the U.S. Department of Energy. This financial boost is expected to support the addition of 7,500 high-powered charging stalls over the next five years. In terms of future expectations, EVgo has raised its revenue guidance for 2024 to $250-265 million and adjusted its EBITDA guidance to a negative $38 million to $32 million.

Furthermore, the company plans to expand its network by installing over 800 new stalls in the coming year. Analysts highlight that EVgo's strategic partnerships and government-backed financing are key drivers in its expansion plans. Despite reporting an adjusted EBITDA loss, the company remains optimistic about achieving adjusted EBITDA breakeven by 2025.

InvestingPro Insights

EVgo's recent stock transactions by CEO Badar Khan offer an intriguing glimpse into the company's current position. According to InvestingPro data, EVgo's market capitalization stands at $543.74 million, reflecting its status as a growing player in the electric vehicle charging infrastructure sector.

The company's revenue growth is particularly noteworthy, with a 73.08% increase over the last twelve months as of Q3 2024, and an even more impressive 92.37% quarterly growth in Q3 2024. This robust revenue expansion aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.

Despite the strong top-line performance, EVgo faces profitability challenges. The company reported an operating income of -$125.08 million over the last twelve months, with an operating income margin of -53.51%. This is consistent with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.

Interestingly, EVgo's stock price has shown significant volatility, as highlighted by an InvestingPro Tip. This is evident in the contrasting price movements: a -40.12% return over the past month, but a strong 114.41% return over the last six months. Such volatility may explain the timing of Khan's stock transactions, potentially balancing between realizing gains and maintaining a significant stake in the company's future.

For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for EVgo, providing deeper insights into the company's financial health and market position.

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