Solid Power (NASDAQ:SLDP) has experienced a downgrade from Wall Street Zen, which lowered its rating from “Hold” to “Sell” in a research note released on Saturday. This adjustment comes amid a series of mixed evaluations from analysts regarding the company’s performance and future prospects.
Analyst Ratings Shift
Earlier reports indicated that Weiss Ratings had also reiterated a “Sell (D-)” rating for Solid Power on October 8. Meanwhile, Needham & Company LLC raised their price target for the firm from $4.00 to $7.00, assigning a “Buy” rating in a note dated November 5. Currently, one analyst has assigned a “Buy” rating while another has issued a “Sell” rating. According to MarketBeat, Solid Power’s stock carries an average rating of “Hold” with a consensus target price of $7.00.
On November 4, Solid Power reported its quarterly earnings, revealing an earnings per share (EPS) of ($0.14). This figure surpassed analysts’ expectations of ($0.17) by $0.03. The company recorded revenues of $4.56 million, significantly higher than the consensus estimate of $3.50 million. Despite these positive figures, Solid Power reported a negative net margin of 429.55% and a negative return on equity of 24.88%, raising concerns among investors.
Insider Trading Activity
In related developments, Director Erik J. Anderson sold 30,000 shares of the company’s stock on December 4, at an average price of $5.20, totaling $156,000. Following this transaction, Anderson retains ownership of 157,617 shares, valued at approximately $819,608.40. This sale represents a 15.99% decrease in his holdings. The transaction has been disclosed in a filing with the Securities and Exchange Commission.
Corporate insiders currently own 7.20% of Solid Power’s stock, reflecting a modest level of insider confidence in the firm.
Institutional Investor Activity
Several institutional investors have made adjustments to their positions in Solid Power recently. Hudson Bay Capital Management LP acquired a new stake valued at approximately $83,000 during the third quarter. Tudor Investment Corp also purchased a new stake worth about $1,709,000, while CIBC Bancorp USA Inc. and Harvest Investment Services LLC invested $56,000 and $1,158,000, respectively. Prelude Capital Management LLC rounded out the list by acquiring a new position valued at approximately $102,000. Collectively, institutional investors hold 33.66% of the company’s stock.
Company Overview
Founded in 2012 as a spin-off from the University of Colorado Boulder, Solid Power, Inc. specializes in the development and manufacturing of all-solid-state rechargeable battery cells targeting the electric vehicle (EV) and aerospace sectors. The company aims to advance solid electrolytes and high-energy battery architectures to enhance safety, energy density, and cycle life compared to conventional lithium-ion batteries. Solid Power’s core offerings include multilayer solid-state battery cells utilizing sulfide-based solid electrolytes and high-capacity cathode materials.
As the company navigates these recent changes in analyst ratings and investor sentiments, its future trajectory remains of keen interest to stakeholders in the EV and aerospace industries.
