Reviewing The Case For Workhorse Group Inc. (WKHS) Going Higher

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BlackRock Fund Advisors recently announced the acquisition of new stake in Workhorse Group Inc. (NASDAQ:WKHS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 232.74% to 3.78 million shares with purchase of 2.64 million shares. This fresh investment now brings its stake to 3.60% valued currently at $58.65 million. In addition, Arosa Capital Management LP raised its holdings by 2.01 million to 2.01 million shares. And SSgA Funds Management, Inc. has lifted its position by 146.11% or 1.0 million shares – to 1.68 million shares.

With over 8.22 million Workhorse Group Inc. (WKHS) shares trading Friday and a closing price of $15.99 on the day, the dollar volume was approximately $131.47 million. The shares have shown a positive weekly performance of 4.72% and its price on 08/21/20 lost nearly -0.87%. Currently, there are 105.14M common shares owned by the public and among those 96.75M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for WKHS have a consensus price objective of $24.33. The analysts have set the share’s price value over the next 12 months at a high of $27.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Workhorse Group Inc. stock is 2.00 for the next 12 months. The average price target is 34.28% above its last price level and an upside to the estimated low will see the stock gain 20.05% over that period. But an upside of 40.78% will see the stock hit the forecast high price target while mean target price for the stock is $26.00.

Insiders at the company have transacted a total of 58 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 25 of these insider trades were purchases, accounting for 5,644,270 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 6,368,370 shares.

The top 3 mutual fund holders in Workhorse Group Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Invesco WilderHill Clean Energy E. Vanguard Total Stock Market Index owns 1.52 million shares of the company’s stock, all valued at over $23.61 million. The company sold 31617.0 shares recently to bring their total holdings to about 1.45% of the shares outstanding. iShares Russell 2000 ETF sold 60452.0 shares to see its total holdings shrink to 1.29 million shares valued at over $20.08 million and representing 1.24% of the shares outstanding. Invesco WilderHill Clean Energy E bought 5723.0 shares to bring its total holdings to over 1.11 million shares at a value of $17.26 million. Invesco WilderHill Clean Energy E now owns shares totaling to 1.06% of the shares outstanding.

Shares of Workhorse Group Inc. (NASDAQ: WKHS) opened at $16.04, down -$0.09 from a prior closing price of $16.13. However, the script later closed the day at $15.99, down -0.87%. The company’s stock has a 5-day price change of 4.72% and 503.40% over the past three months. WKHS shares are trading 425.99% year to date (YTD), with the 12-month market performance up to 287.17% higher. It has a 12-month low price of $1.32 and touched a high of $22.90 over the same period. Currently, 8.22 million shares have been traded, compared to an average intraday trading volume of 24.62 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.95%, 15.88%, and 188.82% respectively.

Institutional ownership of Workhorse Group Inc. (NASDAQ: WKHS) shares accounts for 22.20% of the company’s 105.14M shares outstanding. Mutual fund holders own 14.26%, while other institutional holders and individual stakeholders account for 9.11% and 13.27% respectively.

It has a market capitalization of $1.70B and a beta (3y monthly) value of 2.86. The earnings-per-share (ttm) stands at -$1.87. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.27% over the week and 9.15% over the month.

Analysts forecast that Workhorse Group Inc. (WKHS) will achieve an EPS of -$0.11 for the current quarter, -$0.08 for the next quarter and -$0.28 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.16 while analysts give the company a high EPS estimate of -$0.08. Comparatively, EPS for the current quarter was -$0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 21.70%, and 83.20% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Workhorse Group Inc. (WKHS) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 1 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the WKHS, a number of firms have released research notes about the stock. ROTH Capital stated their Buy rating for the stock in a research note on July 13, 2020, with the firm’s price target at $12-$27. Colliers Securities coverage for the Workhorse Group Inc. (WKHS) stock in a research note released on July 09, 2020 offered a Neutral rating with a price target of. BTIG Research was of a view on July 01, 2020 that the stock is Buy, while Cowen gave the stock Outperform rating on June 26, 2020, issuing a price target of $4.50- $11.50. BTIG Research on their part issued Buy rating on June 19, 2020.

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