Analysts have recently downgraded shares of Solid Power (NASDAQ:SLDP), reflecting growing concerns about the company’s financial performance. Wall Street Zen issued a research note on Saturday morning, reducing their rating from “hold” to “sell.” This shift comes as part of a broader reassessment of Solid Power’s prospects within the market.
Further compounding these concerns, Weiss Ratings reaffirmed a “sell (d-)” rating on October 8, while Needham & Company LLC raised its price target on the stock from $4.00 to $7.00, maintaining a “buy” rating. Currently, data from MarketBeat indicates that the stock holds an average rating of “hold” with a consensus target price of $7.00. Notably, one analyst has rated the stock as a buy, whereas another has issued a sell rating.
Recent Financial Performance and Stock Movements
Solid Power’s recent earnings report, released on November 4, revealed a $0.14 loss per share (EPS) for the quarter. This figure surpassed analysts’ expectations, which had estimated a loss of $0.17 per share. The company reported revenue of $4.56 million, significantly exceeding the consensus estimate of $3.50 million. However, Solid Power’s financial metrics remain troubling, with a negative net margin of 429.55% and a negative return on equity of 24.88%.
In related news, Director Erik J. Anderson sold 30,000 shares of the company on December 4 at an average price of $5.20, totaling approximately $156,000. Following this transaction, Anderson holds 157,617 shares valued at about $819,608.40, marking a 15.99% reduction in his stake. The sale was publicly reported in a filing with the Securities and Exchange Commission.
Changes in Institutional Holdings
Several institutional investors have adjusted their positions in Solid Power recently. Hudson Bay Capital Management LP acquired a new stake valued at around $83,000 during the third quarter. Tudor Investment Corp entered a new investment worth approximately $1.7 million, while CIBC Bancorp USA Inc. and Harvest Investment Services LLC made new purchases valued at about $56,000 and $1.16 million, respectively. Prelude Capital Management LLC also acquired a new position worth approximately $102,000. Currently, institutional investors hold 33.66% of the company’s stock.
Founded in 2012 as a spin-out from the University of Colorado Boulder, Solid Power specializes in developing solid-state rechargeable battery cells for electric vehicles (EVs) and aerospace applications. The company focuses on enhancing safety, energy density, and cycle life compared to traditional lithium-ion batteries through its advanced solid electrolytes and high-capacity battery architectures.
As the market continues to react to these developments, investors are closely monitoring Solid Power’s ability to navigate challenges and capitalize on future opportunities in the evolving battery technology landscape.
