Today’s investors are looking for a way to fast-charge their portfolios. Some of them may be intrigued by electric vehicle charging company Blink Charging (NASDAQ:BLNK) stock.
Yet, after reviewing the facts, you’ll likely agree that BLNK stock is an “F”-rated asset that should be avoided.
Blink Charging might have some small-scale partnerships. However, there’s a gigantic competitor that will probably short-circuit Blink’s growth opportunities. Besides, as we’ll discuss in a moment, it’s a bad sign that a former high-ranking executive divested a large number of Blink shares.
Who Sold a Boatload of BLNK Stock Shares?
Insider share sales shouldn’t be your sole indicator, but it’s definitely worth noting when a former chief executive unloads many a company’s stock shares.
Thus, it’s troubling to discover that Michael Farkas, the former director, chairman and CEO of Blink Charging, reportedly sold 20,000 BLNK stock shares.
Furthermore, Farkas apparently sold 1,438,998 Blink Charging shares in total and purchased zero shares of the company during the past year. Inquiring minds should wonder: Is this all just tax-loss harvesting? Or, does Farkas see trouble ahead for Blink Charging?
If it is year-end tax-loss harvesting, then Farkas might have had a lot of losses to harvest. After all, BLNK stock has been on a relentless downtrend since early 2021.
In any case, it’s been reported that there have been 25 insider sales and only one insider purchase of Blink shares during the past year. Hence, it seems that there’s an unsettling pattern emerging.
Blink Charging’s Biggest Threat
There’s no way to know exactly what Blink Charging’s current and former insiders are thinking when they sell their shares. However, it’s possible that they’re concerned about the ongoing competitive threat from Tesla (NASDAQ:TSLA).
Sure, Blink Charging might make small-scale deals with local businesses. Meanwhile, EV drivers around the world recognize the Tesla brand, and the automaker has plenty of loyal followers.
Tesla’s Supercharger network has already received extensive press coverage. It’s a fast-charging network that’s available in various locations in the U.S. and abroad. In addition, a variety of automakers’ EVs are compatible with Tesla’s Supercharger network.
Let’s not kid ourselves. Tesla dwarfs Blink Charging in practically every way. Tesla has a huge market capitalization and plenty of capital to deploy for marketing, research and other purposes.
We’re not exactly calling Blink a loser, but compared to Tesla, it certainly isn’t a winner.
BLNK Stock Is a No-Go in 2023
Blink Charging has disappointed many of its investors, possibly including some former and current insiders.
It’s an uphill battle for a much smaller company like Blink to compete against Tesla and its Supercharger network.
Consequently, Blink Charging’s investors are taking on a lot of risk in 2023. It might sound harsh to assign an “F” grade to BLNK stock, but it has already left too many investors holding the proverbial bag.
So, now and for the foreseeable future, we don’t recommend holding a share position in Blink Charging.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
