A Workhorse vehicle
Courtesy Workhorse
Workhorse Group stock hit a nearly two-year low a few weeks ago, and CEO Rich Dauch and executive Stan March just bought up shares of the electric-vehicle maker on the open market.
Workhorse (ticker: WKHS) may not be an old gray mare, but it ain’t what it used to be. Shares have managed to gain 0.5% year to date, with Friday’s close of $4.38, and they are off a Feb. 24 intraday low of $2.58—the stock hasn’t traded at that level since June 2020. The company’s market value has plunged to $635 million from $2.8 billion in October 2020. In the time between, Workhorse missed out on a big contract from the U.S. Postal Service, slashed production guidance, and named Dauch as its new CEO. He took the reins last August.
Investor expectations for a raft of good news with Dauch’s hire were dispelled in September, when Workhorse announced a recall of trucks and suspended production. Then in November, the company confirmed it was under investigation by the Justice Department. The new year hasn’t been much more comforting. When reporting fourth-quarter numbers on March 1, Workhorse said it didn’t expect to produce any vehicles in the first half of 2022.
Dauch paid $155,000 on March 14 for 50,000 Workhorse shares, an average price of $3.10 each, according to a form he filed with the Securities and Exchange Commission. Dauch now owns 1.96 million shares in a personal account.
Stan March, vice president of corporate development and communications, also bought 50,000 shares, paying $168,650 over March 11 and 14 for an average price of $3.37 a share. March now owns 118,266 shares in a personal account, and 42,000 through a retirement account. A regulatory filing indicates he joined Workhorse in November.
Workhorse didn’t make either executive available for comment, and declined to comment.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
