WKHS Stock Price: Workhorse Group Inc has five reasons to extend its bullish surge
- Workhorse Group Inc has received $70 billion in financing.
- Inclusion in the Russell 3000 index increases flows from fund managers.
- NASDAQ: WKHS received a bullish buy recommendation with a target price of $26.
- Elon Musk's Tesla has become the world's most valued carmaker, lifting all EV stocks.
- Robinhood accounts owning the stock surged by 436% in June to 116,000.
NASDAQ: WKHS has been on a winning streak, rising from below $3 in June to near $20 as July kicked off. Premarket trading shows that Workhorse Group Inc. is set to extend its gains by another 8% to around $20.75.
Why is the electric carmaker rising? There are five reasons.
Workhorse Group news
1) Workhorse secured $70 million in new financing: The Loveland, Ohio-based firm received the lump sum from an institutional investor and that will enable it to expand production and provide peace and calm for investors.
2) Russell 3000 inclusion: NASDAQ: WKHS has recently been included in the Russell 3000 index of small stocks. Mutual funds and ETFs will now automatically invest in the firm due to their obligation. That is boosting the stock price and also encouraging private investors to pile in.
3) Bullish recommendation: Gregory Lewis, an analyst with BTIG, upgraded his target for NASDAQ: WKHS big-time – from $10 to $26, a whopping increase of 160%. It is essential to note that price is some 30% above levels that shares are currently changing hands, so there is room for more, at least according to Lewis.
4) Tesla: Elon Musk's firm is undoubtedly the leader in the electric vehicle field, and it has now topped Toyota to become the biggest carmaker – in terms of market capitalization. As Tesla is producing only a fraction of what its legacy automotive competition does, perhaps it is overvalued. That allows other firms such as Workhorse Group to come into the spotlight.
5) Robinhood hype: The accessible trading application has seen a surge in usage and people using it. They may either have free time due to lockdowns – or fewer things to gamble on as sports are shuttered. The young crowd using it often coalesces around specific stocks and NASDAQ: WKHS is an example. Accounts surge by 436% in June to 116,000.
These five reasons to rise join Workhorse Group's core offering, which combines a trio of winning advantages. It is not only limited to operating in the EV industry.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
