ChargePoint's Reverse Stock Split Sparks 15% Share Price Decline

ChargePoint shares fell 14.7% after announcing a 1-for-20 reverse stock split to comply with NYSE listing standards. The company said the move aims to increase its share price. Shares had traded around $0.60 to $0.70 per share in July before the reverse stock split.

ChargePoint Holdings (NYSE: CHPT) saw its shares plummet 14.7% following the announcement of a 1-for-20 reverse stock split, aimed at complying with New York Stock Exchange (NYSE) listing standards [1][2][3]. The move was intended to artificially boost the share price to meet the NYSE's minimum trading price criteria.

Prior to the reverse stock split, shares were trading around $0.60 to $0.70 per share in July [1]. The reverse stock split consolidates 20 shares into one, effectively increasing the share price. This action is a common strategy employed by companies facing potential delisting due to low stock prices [1].

The reverse stock split was approved by shareholders at ChargePoint's 2025 Annual Meeting, where a ratio range of 1-for-2 to 1-for-30 was authorized [2]. The final ratio of 1-for-20 was determined by the Nominating and Corporate Governance Committee [2][3]. The stock will continue to trade under the ticker symbol "CHPT," but with a new CUSIP number (15961R 303) and ISIN (US15961R3030) [2][3].

Investors have reacted negatively to the move, with shares closing at $9.91 on July 28, down 18.85% from the previous day's close [2]. The stock experienced further volatility, rising 0.40% in after-hours trading to $9.95 [2]. The reverse stock split does not change the overall value of the company; it only consolidates shares into fewer, higher-priced units [1].

ChargePoint's financial performance has been challenging, with the company reporting a net loss of $282.9 million in the fiscal year ending in January and a 9% decrease in revenue during the first quarter of 2026 compared to the previous year [1]. These financial struggles have likely contributed to investor wariness and the stock's recent decline.

References:
[1] https://www.fastcompany.com/91375507/chargepoint-reverse-stock-split-today-why-share-price-changed
[2] https://www.nasdaq.com/articles/chargepoint-implements-1-20-reverse-stock-split-maintain-nyse-listing
[3] https://www.chargepoint.com/about/news/chargepoint-announces-reverse-stock-split?srsltid=AfmBOordD6W_v1H9MiKTmQIat1VdC0nNKoSex0BxQJGi8s9Au1fQehhs