Canoo (NASDAQ:GOEV) stock is in focus following a half-a-million-dollar insider purchase by CEO Tony Aquila. Shares of the embattled electric vehicle maker (EV) are down over 70% year-to-date, despite a major deal with Walmart (NYSE:WMT). In July, Walmart agreed to purchase 4,500 of Canoo’s Lifestyle Delivery Vehicles (LDV), becoming the first commercial customer to do so. The retailer giant also has an option to purchase an additional 5,500 LDVs. The EVs are expected to begin deliveries next year and will contribute toward Walmart’s goal of achieving zero emissions by 2040. Canoo expects production of the LDV to begin next quarter.
The Walmart deal is an extremely positive signal, as it shows that a major retailer approves of Canoo’s vehicles. The deal will also increase brand awareness across the nation. With that in mind, let’s get into the details of Aquila’s purchase.
GOEV Stock: CEO Tony Aquila Doubles Down
On Sept. 13, Aquila purchased 200,000 shares at an average price of $2.57 per share. After the transaction, he now owns a total of 2.73 million shares directly. The CEO also owns an additional 51.23 million shares through various limited liability companies. In addition, it should be noted that the purchase was enacted via a prearranged 10b5-1 trading plan that was established on June 15. That’s about one month before the Walmart deal was announced. In 2022 so far, the CEO has purchased a total of 400,000 shares.
Other Canoo insiders have not been so receptive. Since March, 10% owner DD Global has sold 14.93 million shares at average prices ranging between $6.53 and $4.02. The last sale occurred on July 21 and DD has not adjusted its position since then.
As of June 30, Canoo had “over $1 billion” in pending sales. That’s more than its current market capitalization of about $615 million. However, the company remains largely unprofitable, reporting a second-quarter loss of $164.4 million, up from $112.6 million year-over-year. During the quarter, revenue was also nonexistent.
Despite the net loss and zero revenue, analysts remain bullish on the EV startup. GOEV has an average price target of $8.13 among four analysts with coverage of the stock. The most recent update is attributed to Stifel analyst Bruce Chen. On Sept. 15, Chen initiated coverage of Canoo with a “buy” rating and a price target of $4. Chen notes that the company focuses on high-margin aspects of the automotive industry, such as compact SUVs, pickup trucks, and last-mile delivery. The analyst also complements Canoo’s “seasoned management team” who has a focus on high-growth sectors. Meanwhile, Canoo differentiates itself from other automakers by “attempting to capture value across the entire vehicle lifecycle.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.