Why EVgo Stock Plunged This Week
Shares of electric vehicle (EV) charging company EVgo (NASDAQ: EVGO) fell as much as 30.4% in trading this week, according to data provided by S&P Global Market Intelligence, after an insider sold 23 million shares for $5 apiece.
LS Power, which was EVgo's largest shareholder, announced an underwritten sale of 23 million shares on Monday. The sale was made at $5 per share with $4.8125 going to the seller and $0.1875 going to investment banks underwriting the deal.
In a sale like this, the investment banks agree to buy shares at a discount to the market's price, which was $6.09 per share as of last Friday's close, betting they can sell shares for a profit over time. The market had other plans and shares have traded well below the $5 sale price all week.
Source Fool.com
