STEM Stock: 7 Things to Know as Stem Starts Trading Today

Today, the highly anticipated start of trading for Stem (NYSE:STEM) has arrived. However, shares of STEM stock have mostly traded lower since the open. In fact, at one point in early trading this morning, shares traded down as much as 11%. Currently, shares of Stem are up around 4%.

A concept photo of different energy storage systems.

Source: Shutterstock

Stem is a company many investors and analysts are bullish on. In fact, Citron Research, once a short-focused outfit, has taken on a very bullish position on Stem. The firm’s price target on this clean energy storage and artificial intelligence play is $100 per share. Given where shares are trading at today (around $25 per share), that upside implies a 4-bagger on the horizon.

For investors looking to get into the clean energy storage space, Stem certainly looks intriguing at these levels. Let’s dive into a few things every investor ought to know about this company.

What Investors Need to Know About STEM Stock

  • Stem bills itself as a “global leader in AI-driven energy storage.”
  • The company has been a pioneer for more than a decade in providing utilities, businesses and project developers exceptional service along with industry-leading software.
  • Stem officially completed its reverse SPAC merger with Star Peak Energy Transition (NYSE:STPK) yesterday.
  • The merger provided more than $600 million in gross cash proceeds to Stem.
  • The proceeds are derived from approximately $383 million in cash from Star Peak’s trust account, and $225 million from a PIPE.
  • The company intends to use this capital to “help propel Stem’s product, capabilities and market reach to the next level.”
  • The company expects to see a more than four-fold increase in revenue over 2021 levels, which is covered by the company’s existing order backlog.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.


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