On May 25, 2023, former Director, Chairman, and CEO Michael Farkas sold 20,125 shares of Blink Charging Co (BLNK, Financial), an electric vehicle (EV) charging infrastructure provider. This insider sell comes amidst a year of trading activity for Farkas, who has sold a total of 417,123 shares and purchased none in the past year.
Who is Michael Farkas?
Michael Farkas is the founder of Blink Charging Co and has served as the company's Director, Chairman, and CEO. Under his leadership, the company has grown to become a significant player in the EV charging infrastructure market, providing charging stations and related services to businesses and consumers across the United States.
About Blink Charging Co
Blink Charging Co is a leading provider of EV charging equipment and networked EV charging services. The company offers both residential and commercial EV charging solutions, including Level 2 and DC Fast Charging stations. Blink's charging infrastructure is designed to support the growing demand for electric vehicles, helping to reduce greenhouse gas emissions and promote a cleaner, more sustainable future.
Insider Trading Analysis
Over the past year, there have been 2 insider buys and 6 insider sells for Blink Charging Co. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains on their investments. However, it is essential to consider the context of these transactions and the potential impact on the stock's future performance.
Stock Price and Valuation
On the day of Michael Farkas's recent sell, shares of Blink Charging Co were trading at $7.13 apiece, giving the company a market capitalization of $420.851 million. With a GuruFocus Value of $77.54, the stock has a price-to-GF-Value ratio of 0.09, indicating that it may be a possible value trap and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Conclusion
Michael Farkas's recent sale of 20,125 shares of Blink Charging Co is part of a broader trend of insider selling over the past year. While this may raise concerns for potential investors, it is crucial to consider the stock's valuation and the company's growth prospects. With a price-to-GF-Value ratio of 0.09, Blink Charging Co may be a possible value trap, and investors should exercise caution before making any investment decisions.
As the EV market continues to expand, Blink Charging Co's charging infrastructure will play a vital role in supporting this growth. Investors should closely monitor the company's performance, insider trading activity, and overall market trends to make informed decisions about their investments in the EV charging space.
