On September 7, 2023, Michael Farkas, the former Director Chairman & CEO of Blink Charging Co (BLNK, Financial), sold 20,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 1,438,998 shares over the past year and purchased none.
Blink Charging Co is a leading owner, operator, and provider of electric vehicle (EV) charging equipment and networked EV charging services. The company's principal line of products and services is its Blink EV charging network (the Blink Network), EV charging equipment, and EV charging services.
The insider's recent sell-off could be seen as a bearish signal, especially considering the overall insider trading trend at Blink Charging Co. Over the past year, there has been only one insider buy compared to 25 insider sells.
The relationship between insider trading and stock price is complex. While insider selling can sometimes indicate a lack of confidence in the company's future prospects, it can also be motivated by personal financial planning needs or other factors unrelated to the company's performance. Therefore, it's crucial to consider the broader context when interpreting insider trading activity.
On the day of the insider's recent sell, shares of Blink Charging Co were trading at $3.56, giving the company a market cap of $228.449 million. This is significantly lower than the company's GuruFocus Value of $84.74, which suggests that the stock may be undervalued.
The GuruFocus Value is an estimate of the stock's intrinsic value based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. With a price-to-GF-Value ratio of 0.04, Blink Charging Co is considered a possible value trap, which means investors should think twice before buying.
In conclusion, while the insider's recent sell-off may raise some eyebrows, it's important to consider the broader context. The company's low price-to-GF-Value ratio suggests that the stock may be undervalued, but the overall insider trading trend at Blink Charging Co is bearish. As always, investors should conduct their own due diligence before making investment decisions.
