50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Evgo director David Nanus sells $115 million in stock

Published 12/21/2024, 05:36 AM
EVGO
-

David Nanus, a director at EVgo Inc. (NASDAQ:EVGO), sold 23 million shares of Class A Common Stock in an underwritten public offering, raising $115 million at a price of $5.00 per share. This transaction, dated December 18, 2024, reduced Nanus's holdings to approximately 5.88 million shares. The sale price represents a premium to the current trading price of $4.36, coming amid significant market volatility - the stock has seen a -29.7% decline over the past week despite a strong 118% gain over the last six months.

The sale was part of a broader transaction involving the conversion and disposal of Class B Common Stock and EVgo OpCo LLC Units, which were exchanged for Class A Common Stock. These conversions were executed without any direct financial consideration, as detailed in the company's filings. According to InvestingPro analysis, EVgo maintains strong liquidity with a current ratio of 2.19, though the company faces profitability challenges with negative EBITDA of $69.25 million in the last twelve months.

Nanus's role as a director and his affiliations with the LS Power Entities, which control EVgo Holdings, LLC, might have influenced these transactions. However, he has disclaimed beneficial ownership of certain shares associated with these entities. InvestingPro subscribers can access 13 additional key insights about EVgo's financial health, valuation metrics, and growth prospects through the comprehensive Pro Research Report.

In other recent news, EVgo, the electric vehicle charging company, has been in the spotlight due to a series of significant developments. The company recently secured a substantial $1.25 billion loan from the Department of Energy (DOE), an event that financial analysts from both Stifel and Benchmark view as a reaffirmation of EVgo's strong execution capabilities. This financial support is set to bolster the company's expansion plans, which include the addition of 7,500 new fast-charging stalls to its current network.

Simultaneously, an affiliate of LS Power Equity Partners, a major shareholder in EVgo, announced the sale of 23 million shares at a significant discount, causing the company's stock to fall sharply. This move does not involve any shares from EVgo itself, and the company will not benefit financially from the offering. All proceeds from the sale will go to LS Power.

Despite these developments, Stifel and Benchmark have maintained their Buy ratings on EVgo, with price targets of $10 and $12 respectively. These ratings reflect confidence in EVgo's strategy and the expected positive impact of the DOE loan on the company's expansion and financial performance. These are recent developments in the company's trajectory, and it will be interesting to see how they unfold in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.