Plug Power Shares Drop 6.7% Following Analyst Downgrade

Plug Power, Inc. has experienced a significant decline in its stock price, falling by 6.7% on Monday following an analyst downgrade. The company’s shares, traded under the ticker symbol PLUG on the NASDAQ, dropped from a previous close of $2.24 to a low of $2.04 before ending the day at $2.09. The downturn comes after Susquehanna Financial Group revised its price target on Plug Power from $3.50 to $2.50, maintaining a neutral rating on the stock.

During midday trading, Plug Power saw a total of 73,003,020 shares exchanged, which represents a 24% decrease compared to its average session volume of 95,894,977 shares. The company’s market capitalization currently stands at $2.41 billion.

Analysts’ Mixed Views on Plug Power

Plug Power has been the focus of several analysts recently. On August 12, BMO Capital Markets reduced its price target from $1.10 to $1.00, assigning the stock an “underperform” rating. Conversely, on October 3, HC Wainwright increased its target price from $3.00 to $7.00 while recommending a “buy” rating.

On October 9, HSBC upgraded Plug Power to a “strong-buy” rating and set a target price of $4.40. Other analysts, such as Jefferies Financial Group, have also adjusted their ratings, increasing their price target from $0.90 to $1.60 and maintaining a “hold” rating.

Currently, the consensus rating for Plug Power is “Hold,” with the average target price around $2.42. Out of the analysts covering the stock, one has rated it as a Strong Buy, four as Buy, six as Hold, and six as Sell.

Institutional Investors Take Positions

Recent activity indicates that institutional investors are adjusting their stakes in Plug Power. Heights Capital Management Inc. acquired a new stake in the company valued at approximately $31,174,000 during the first quarter. Additionally, Two Sigma Investments LP increased its holdings by 292.1% in the third quarter, now owning 10,830,893 shares valued at $25,236,000 after adding 8,068,713 shares.

Furthermore, Vanguard Group Inc. boosted its stake by 7.6%, now holding 109,631,956 shares valued at $255,442,000. Other significant moves include Legal & General Group Plc, which increased its holdings by 59.9% in the second quarter, and Electron Capital Partners LLC, which made a new investment valued at $10,663,000.

Currently, institutional investors control 43.48% of Plug Power’s shares.

Plug Power released its earnings report on November 10, revealing a loss of $0.12 earnings per share for the quarter, slightly better than the consensus estimate of $0.13. The company reported revenue of $177.06 million, falling short of the anticipated $185.41 million. With a significant negative net margin of 292.84% and a negative return on equity of 90.22%, Plug Power faces challenges ahead.

Looking forward, analysts predict that Plug Power will post an earnings per share (EPS) of -1.21 for the current fiscal year. The company develops hydrogen and fuel cell product solutions across various regions, including North America, Europe, and Asia, focusing on innovative technologies that support material handling, backup power, and fuel cell systems.

Investors and analysts alike will continue to monitor Plug Power’s performance closely, particularly in light of the mixed ratings and recent trading activity.