Insiders And Institutions Take Big Stake In Canoo, Inc
Believe it or not but little old EV startup Canoo, Inc (NASDAQ: GOEV) is the most bought stock by insiders in 2021. The insiders bought 35.315 million shares in two transactions worth $230.744 million. This is worth about 14% of the shares outstanding and brings the total insider ownership to over 25%. For those looking for a stock with a high degree of insider confidence, this is one worth looking at since the company’s CEO is the single largest buyer of the stock. This, in addition to the institutional activity, is a resounding vote of confidence in the company’s performance for the coming 2022 calendar year.
In regards to the institutions, institutional activity has been equally heavy with 95 transactions amounting to roughly $276 million in net buying. This is worth an additional 15% of the market cap (with shares trading near $7.75, with the bulk of the purchasing done in the third quarter of 2021. Notable buyers include AIG and UBS which made two purchases split between two of its actively managed funds. The bottom line, Canoo is an EV play sell-siders and insiders see moving higher in the coming year.
Canoo, Inc Raises Guidance
Canoo, Inc issued a favorable statement in December upping the production guidance for both fiscal 2022 and fiscal 2023. The company is expecting to see production in 2022 top 505,000 units versus the 501,000 previously expected as the company shifts its strategy to the U.S. The company ended its contract with VDL Groep and says it will commence operations at one of it US plants and accelerate plans for the other. The company now sees the Oklahoma facility operational in 2023 and helping to boost production to 14,000 to 17,000 annually. Canoo and VDL Groep are still working together to expand Canoo into Europe but in a different manner. VDL Groep, to help define the new relationship, is expected to purchase $8.4 million of Canoo stock.
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"The company has now refined its manufacturing strategy and assembled a team to execute the production roadmap for 2022 – 2025," Investor, Chairman & CEO Tony Aquila commented
The analysts are slowly warming to Canoo, Inc. The company picked up four ratings since going public and has a weak Buy rating that is slowly trending higher. The most recent shout-out came in late December from Roth Capital when they raised their rating and upped the price target. Roth Capital raised their rating to Buy from Neutral and the price target to $14 from $4.00. This compares to the broader consensus of $13.50 and the high price target of $19. The consensus implies about 75% of the upside for the stock and is now trending upward.
The Technical Outlook: Canoo Is A Short-Squeeze Candidate
Canoo entered January with a short interest above 28% making it a high-probability candidate for short-covering rally or short-squeeze. On a technical basis, price action appears to be bottoming and could be setting the stock up for a rebound or squeeze in early January. The indicators are consistent with a bottom at the current levels as well, and that is confirmed again by the early pre-market action. Assuming the market can get above the short-term moving average at $8.90, we see this stock moving back up to the $13 level and then higher as production ramps (assuming no hiccups).
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Canoo (GOEV) | $3.00 | +4.9% | N/A | -0.22 | Buy | $49.19 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
