Hyliion Holdings Stock

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Contributor, Benzinga
September 8, 2021

Hyliion Holdings produces electrified powertrain systems for trucks that it says can improve or fully replace diesel or natural gas-fueled powertrains. 

Electric vehicle (EV) stocks have attracted significant attention in recent years. The rise in Tesla (NASDAQ: TSLA) has seen investors pile into any stock that they feel could be the “next” Tesla. While EV companies such as Tesla, NIO (NYSE: NIO), Blink Charging (NASDAQ: BLNK) and XPeng (NYSE: XPEV) are the first that come to mind when thinking of EVs, companies such as Hyliion have also gained some attention, although they haven’t seen the same growth in share prices.

HYLN Stock Price

Looking at Hyliion’s share price in the past year doesn’t make for good reading as it has seen a significant decline and heavy selling pressure from its intraday high of $58.66 (seen in September 2020). However, that price was achieved in the lead-up to Hyliion’s shares actually being listed after it combined with SPAC firm Tortoise Acquisition Corp. The merger was announced in July, with Hyliion going public at the beginning of October 2020, at which point, its shares began to move lower. 

Nevertheless, its stock price does seem to have found some support at current levels, and it recently moved out of the oversold territory on the RSI. 

One of Hyliion’s competitors, Westport Fuel Systems (NASDAQ: WPRT), is currently trading at about half of Hyliion’s share price. In addition, it has a market cap of $0.61 billion, compared to Hyliion’s market cap of $1.53 billion. 

HYLN Stock Forecast

As mentioned, Hyliion’s shares have found support at current levels. After a significant decline over the past year, it could be considered that now represents a good opportunity to take a serious look at the company. 

In July, Cantor Fitzgerald analyst Josh Cohen told investors that the company is becoming a leading global provider of electrified powertrain solutions for Class 8 vehicles (a vehicle with a GVWR exceeding 33,000lb/14,969 kg). As a result, Cohen initiated coverage of Hyliion with an Overweight rating and a $17 price target, stating that the Total Addressable Market (TAM) for the company’s Hypertruck ERX is $17 billion per year in the United States and $94 billion per year globally.

Elsewhere, UBS analyst Steven Fisher initiated coverage of Hyliion in March, setting a Neutral rating and a $14 price target. At the time, the company’s shares were trading at $13. However, Fisher stated that the company should see progress in moving from zero revenues to obtaining a 6% share of the North America Class 8 market by 2030.

If both analysts are correct in their predictions for the company, then Hyliion investors should see substantial gains over the next few years. Recent news regarding the company has been positive. 

HYLN Stock News

Over the past few months, there have been several news events regarding Hyliion Holdings: 

  • In May, the company partnered with frac sand solutions provider Detmar Logistics. It is the first oil and gas company Hyliion has collaborated with. Hyliion is working with Detmar to electrify its fleet over the next 5 years. 
  • Later the same month, the company reported initial results from a truck loan program launched in partnership with NW Natural. The program saw Hyliion partner with NW to equip a freightliner Cascadia day cab with their hybrid compressed natural gas solution.
  • At the beginning of August, Hyliion announced that Detmar Logistics had executed a reservation agreement for 300 Hypertruck ERX systems.
  • Mid-August saw the company announce Dennis Gallagher as its new COO, while a few days later, former U.S. Transportation Secretary Elaine Chao joined its board of directors.
  • And finally, the Class 8 commercial semi-truck company recently announced the debut of Hyliion Hybrid eX.

For real-time stock news updates, Benzinga Pro users can add Hyliion to their watchlist.

How to Buy Hyliion Holdings Stock

Follow these 5 steps for a seamless process.

Research Hyliion.

Being able to invest successfully and pick the right stocks for your portfolio requires thorough research. Take a deep dive into Hyliion, look at its recent filings and any recent news. You should aim to build an idea of where you think the company could be in the next few years.

Find a broker.

When you are confident of your investment in the company, you will need to find a broker. Again, it is essential to research the broker to learn about aspects such as the fees they charge and the markets you can trade. Each broker will charge varying fees and provide access to different platforms that may offer markets you are not interested in. Luckily you can see the best online stock brokers for Hyliion further down this article. 

Choose your order type. 

Once you have opened and funded your brokerage account, you will then need to decide if you buy Hyliion shares at the current market price or place a limit order to buy if the shares hit a specified price. 

Market orders are executed at the current market price, so they are dictated by the market. Therefore, choosing a market order will mean that your order is highly likely to be filled, but you may pay a higher price than initially planned.

Limit orders are executed at a prespecified price. If you put in a limit order, the broker will only complete the order at the price you define or below.

Calculate how many shares you want. 

You will also need to calculate how many Hyliion shares you want and the percentage risk that represents in your portfolio. Don’t be pressured to invest a large amount of money in the stock if you are not comfortable. Instead, you can start with a small amount and add to your position over the next few weeks, months or years.  

Buy Hyliion (HYLN) shares. 

The final step is to execute your order. However, first, make sure you have correctly filled out all the details before clicking the Submit button. 

From here, your broker will then work on filling the order. If they cannot fill the order, it may be canceled or left open for a certain period. Orders can be canceled before being filled. 

Best Online Stock Brokers for HYLN Stock

As mentioned above, not all brokers are equal, and some will not have Hyliion shares on their platform. However, below you can view a table of the best online stock brokers for HYLN.  

HYLN on Benzing Pro

Hyliion Holdings shares went public at the beginning of October 2020 via a SPAC merger. After the merger was completed, Hyliion shares had already begun their decline and have continued to slide in 2021. On September 3, its shares fell — down almost 3% — when the screenshot was taken. 

The 50-day moving average is $9.73, while the 52-week range is between $7.69 and $44.90. The float (shares available to trade) currently stands at 119.084 million, while the short percentage of float (percentage of shares shorted by institutional traders) is presently at 19.98%. 

In contrast, Westport Fuel Systems’ float is 3.76 million, with the short percentage of float at 2.64%.

Hyliion Holdings Stock

Hyliion Holdings Price Chart, Screenshot taken from Benzinga Pro on 09/03/2021

Buying Hyliion Shares

Hyliion undoubtedly has potential as a company. However, there are legitimate concerns that its products may not sell well. This means that it is vital to manage your risk if you do decide to invest in the company.

Hyliion has to find a way to entice more customers to its products, and most importantly, the Hypertruck ERX. If the company can find a way to garner more interest, then its current share price will be considered a bargain.

Frequently Asked Questions

Q

What kind of company is Hyliion?

A

Hyliion is an industrial company in the machinery sector. It produces electrified powertrain systems for Class 8 commercial vehicles — trucks with a gross vehicle weight rating (GVWR) over 33,000 lb or 14,969 kg.

Q

What products does Hyliion produce?

A

The company has 3 product lines: its powertrains, which can be fitted to Class 8 trucks; the Hypertruck ERX, which is a truck built by Peterbilt and fitted with Dana products by Hyliion and its battery solutions products.

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.