Workhorse Group, Inc. (WKHS) shares are trading lower on Monday, ahead of the company’s anticipated release of second-quarter earnings for fiscal year 2024 on Wednesday before the market opens. Analysts are projecting a loss of $1.44 per share and revenue of $4.19 million.
This decline follows a trend: Workhorse missed analyst estimates for both revenue and earnings per share (EPS) in the first quarter, falling short by 67% and 11%, respectively. This pattern of missing earnings targets has become somewhat of a recurring theme for the company.
The stock currently sits at around $1.1, trading below its 50-day moving average of $2 and near the bottom of its 52-week range, which spans from $1.1 to $22.
Navigating the Market for Workhorse Shares
If you’re interested in investing in Workhorse, you can buy shares through a brokerage account. Many online platforms offer fractional shares, allowing you to purchase portions of stock without buying an entire share. This is particularly useful for companies with high stock prices, like Berkshire Hathaway.
With Workhorse currently trading at $1.14, you could purchase 87.7 shares for $100.
For those looking to short the stock, the process is more complex. Shorting involves borrowing shares to sell with the expectation that the price will drop, allowing you to buy back the shares at a lower price and keep the difference. This requires access to an options trading platform or a broker who allows short-selling.
Alternatively, you can use options contracts, buying a put option or selling a call option at a strike price above the current share price. Both options strategies can potentially profit from a decline in the share price.
Understanding the Current Stock Situation
Workhorse’s current stock performance and upcoming earnings report present a complex landscape for investors. The company’s history of missing earnings targets and its current trading price near the bottom of its 52-week range raise concerns. However, the potential for growth in the electric vehicle sector could also make Workhorse an appealing investment for some.
Ultimately, investors should carefully analyze the company’s financial performance, future prospects, and their own risk tolerance before making any investment decisions.
