Workhorse Group Inc. (NASDAQ: WKHS) has recently hit a new low, with its stock price plummeting to just $0.7, marking a drastic -95.62% drop over the past year. This downturn has sparked concerns about the company's future in the competitive electric vehicle market.
On a positive note, Workhorse Group secured an additional $2.6 million in funding from an institutional investor through a securities purchase agreement. Despite this, analyst TD Cowen has lowered the stock's price target due to liquidity issues and disappointing revenue.
Workhorse's recent financial report shows Q2 sales of $800,000 and a cash balance of $5.3 million. The company remains hopeful about the EV market's long-term potential, focusing on strategic partnerships and cost-cutting measures to drive commercial fleet demand.
Analysis and Key Takeaways
InvestingPro data reveals that Workhorse Group Inc. (NASDAQ: WKHS) is facing challenges, with a shrinking market capitalization of $17.09 million. The low Price / Book ratio of 0.29 suggests the stock may be undervalued, but the gross profit margin of -309.08% indicates operational difficulties.
Investors should be cautious as Workhorse struggles with debt interest payments and cash burn. However, some analysts predict improved earnings ahead, and the Relative Strength Index (RSI) signals a potential buying opportunity for contrarian investors.
With a one-year price total return of -95.0%, investing in Workhorse Group comes with high risks. Monitoring the company's upcoming earnings release on November 8, 2024, will provide further insights into its performance and direction.
For a detailed analysis and more tips on Workhorse Group Inc. (NASDAQ: WKHS), visit InvestingPro for expert guidance.