Volta Share Price Forecast March 2022 – Time to Buy VLTA?
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Shares of electric vehicle charging specialist Volta (NYSE: VLTA) are in the red today, after closing at $3.37 as of March 28th (19:59 EST). Investors have started selling Volta shares after learning that major changes are coming to the company’s management team. With the shares now at an all-time low, many investors have started to look at it as a buying opportunity. Two great factors have affected investor sentiment – an analyst’s dour outlook and changes to the C-suite.
Volta – Technical Analysis
According to Volta’s financial statement, the market cap of the company is at $546.596 million with total assets worth $508.58 million.
Oscillators such as Volta such as Relative Strength Index (14)(34.91), Stochastic %K (14, 3, 3)(36.62), Commodity Channel Index (20)(−205.17), Average Directional Index (14)( 15.68) and Awesome Oscillator(−0.36) are neutral. Moving averages such as Exponential Moving Average (10)( 4.13), Simple Moving Average (10)(4.24), Exponential Moving Average (20)(4.28), Simple Moving Average (20)( 4.20) and Exponential Moving Average (30)(4.45) are indicating a sell action.
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Recent Developments
Volta Charging is an American electric vehicle infrastructure company that provides chargers compatible with all major plug-in hybrid and battery electric vehicle types in the United States and have a digital screen featuring advertisements. Advertisements make charging free. As of 2021, the company has 2000 charging stations spanning 23 U.S. states. The company was founded in 2010 by Scott Mercer and Chris Wendel, with famous actor Leonardo DiCaprio as an early investor.
Volta merged with a special-purpose acquisition company called Tortoise Acquisition Company II back in February 2021. It debuted in the stock market following the merger. The company announced a partnership with Topgolf to install charging stations at Topgolf entertainment centres in November 2021. This resulted in a revenue increase of 77% year-over-year to reach $8.5 million in the third fiscal quarter of 2021.
On March 28th, 2022, Volta announced that founded Scott Mercer will step down as CEO after a transitional period. Mercer will still play a role in the company after his resignation. He is slated to act as an advisor to the board of directors through March 31, 2023, in addition to searching for a new CEO. Shareholder confidence has been considerably rattled by Mercer’s departure. Some more bad news include Chris Wendel, Volta’s co-founder and president, resigning from the company and the board. An analyst at D.A. Davidson, Matt Summerville downgraded Volta’s stock to neutral from buy.
Should You Buy VLTA Shares?
Investors may find some metrics which suggest that Volta may not be driving in the right direction. The company reported a revenue of $20.2 million for the nine-month period ending Sept. 30, 2021, which represents an 82% increase compared to the year before. This is a good sign for a growth company like Volta, which suggests that the company is planning to expand its charging station offerings.
On the other hand, The company’s EBITDA for the nine months ending Sept. 30, 2021, was negative $142.6 million. This is a steeper loss than the negative $28 million reported the year before. While it is expected that a company like Volta will experience losses, those aren’t occurring in a vacuum. Serious concerns about the company’s stewardship are raised due to the turnover in the C-suite. For now, investors should wait and reevaluate the company once it reports fourth-quarter earnings and steadies the ship in terms of management.
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