Nikola Corp (NASDAQ:NKLA) shares are trading lower by some 11% over the trailing week to $1.50. The company early Monday announced an Equity Distribution Agreement with BTIG to sell up to $100 million of common stock via an at-the-market offering, paying BTIG a 2.5% commission, with flexible termination terms.
Separately, Nikola raised $65 million by selling common stock to convertible senior PIK toggle noteholders. Between December 3, 2024, and January 31, 2025, a temporary conversion rate will allow issuing up to 48.1 million shares, exceeding post-January 2025 levels.
Nikola also said it repaid $39.4 million in Series B-1 Senior Convertible Notes due 2025, terminated related agreements and canceled certain hydrogen take-or-pay agreements, significantly reducing contingent liabilities.
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Should I Sell My NKLA Stock?
Whether to sell or hold a stock largely depends on an investor’s strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Nikola have lost 93.05% year to date. This compares to the average annual return of -82.7%, meaning the stock has underperformed its historical averages. Investors can compare a stock’s movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Nikola stock currently has an RSI of 17.39, indicating oversold conditions.
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NKLA has a 52-week high of $34.50 and a 52-week low of $1.40.
