What's Going On With Nikola Stock?
Portfolio Pulse from Erica Kollmann
Nikola Corporation (NASDAQ:NKLA) shares are hitting new all-time lows after announcing a securities purchase agreement and a mixed shelf offering of up to $500 million. Despite beating Q2 expectations, the stock is down over 27% in the past month. Analysts have a 12-month price target of $5.50, with no positive ratings.
August 28, 2024 | 4:03 pm
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Nikola's stock is declining due to a $500M mixed shelf offering and a securities purchase agreement. Despite positive Q2 results, the stock is down 27% in a month. Analysts have a 12-month price target of $5.50, indicating potential further downside.
The announcement of a $500M mixed shelf offering typically dilutes existing shares, leading to a decline in stock price. Despite beating Q2 expectations, the stock's significant drop over the past month and analysts' price targets suggest further downside. The lack of positive analyst ratings further supports a negative short-term outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100