Friday, July 23, 2021 8:37:00 PM
4:20 PM ET 7/23/21 | Dow Jones
Al Root
Most of the time, a stock as volatile as Plug Power will rise in response to an upbeat call from a big broker. But shares of the hydrogen-technology company fell despite a new Buy rating from Citigroup analyst P.J. Juvekar.
Juvekar launched coverage with a price target of $35, well above the current level. Two factors -- one fundamental and the other less so -- might be at play.
Make no mistake, Plug (ticker: PLUG) stock is volatile. At $26.63, shares are down 65% from their January 52-week high of more than $75 a share, but up 277% from their July 2020 52-week of $7.04 a share. The stock is down more than 20% over the past month.
Holding Plug stock is an adventure. The shares were down 2.3% in late trading Friday. The S&P 500 and Dow Jones Industrial Average, for comparison, were up 1% and 0.6%, respectively.
Citi's level of enthusiasm can't be blamed for the weakness. Juvekar wrote in his report that the hydrogen economy is on the cusp of a breakout. Plug makes fuel-cell technology that generates electricity from hydrogen gas. It also plans to make equipment that produces hydrogen by passing electricity through water.
Juvekar likes both that vertically integrated strategy, making the fuel and the equipment that uses it, and the company's balance sheet. Plug has about $4 billion in cash available to invest.
It's a bullish call, but not an out-of-consensus one. That is the first problem for the stock. Overall, 65% of analysts covering Plug stock rate shares at Buy, while the average Buy-rating ratio for stocks in the S&P is about 55%. And the average target price among analysts is more than $43 a share, higher than Juvekar's prediction.
The bottom line is that his assessment may not have made investors any more bullish than they already were.
The other problem for Plug's stock might be that it is a Friday, in the summer. Investors aren't are tuned into the markets as they often are.
Plug stock was on pace to trade about 13 million shares Friday, less than half of its average volume of about 28 million shares during the second quarter. On an ordinary day, trading volume wouldn't be less than 50% of the average for the spring.
Low trading volume can result in unexpected outcomes from time to time. Maybe the stock will react on Monday, when traders get back from the beach.
Recent PLUG News
- Plug Signs MOU with Allied Green Ammonia for 3GW of Electrolyzer Supply at World-Class Green Ammonia Production Facility • GlobeNewswire Inc. • 05/03/2024 11:00:00 AM
- The Gross Law Firm Notifies Plug Power Inc. Investors of a Class Action Lawsuit and Upcoming Deadline - PLUG • PR Newswire (US) • 05/03/2024 09:45:00 AM
- Plug Continues to Expand Cryogenic Sales with Multiple Customer Agreements and International Expansion • GlobeNewswire Inc. • 05/02/2024 11:00:00 AM
- Plug Secures First International PEM Electrolyzer Certification in Korea • GlobeNewswire Inc. • 05/01/2024 11:00:00 AM
- Plug to Announce 2024 First Quarter Results • GlobeNewswire Inc. • 04/30/2024 11:00:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Plug Power Inc.(PLUG) Shareholders • PR Newswire (US) • 04/26/2024 09:45:00 AM
- Plug Signs Additional BEDP Contracts for a Total of 4.5GW of Electrolyzers Across Europe and the United States • GlobeNewswire Inc. • 04/25/2024 11:00:00 AM
- Plug Continues to Make Substantial Advancement in Hydrogen Generation Buildout • GlobeNewswire Inc. • 04/23/2024 11:00:00 AM
- May 21, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against PLUG • PR Newswire (US) • 04/19/2024 10:20:00 AM
- May 21, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against PLUG • PR Newswire (US) • 04/16/2024 10:15:00 AM
- Shareholders that lost money on Plug Power Inc.(PLUG) Urged to Join Class Action - Contact The Gross Law Firm to Learn More • PR Newswire (US) • 04/12/2024 09:45:00 AM
- Plug Power Inc. Class Action: The Gross Law Firm Reminds Plug Power Inc. Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 21, 2024 - PLUG • PR Newswire (US) • 04/09/2024 10:25:00 AM
- Shareholders of Plug Power Inc. Should Contact The Gross Law Firm Before May 21, 2024 to Discuss Your Rights - PLUG • PR Newswire (US) • 04/05/2024 09:45:00 AM
- Lost Money on Plug Power Inc.(PLUG)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm • PR Newswire (US) • 04/02/2024 09:45:00 AM
- The Gross Law Firm Notifies Plug Power Inc. Investors of a Class Action Lawsuit and Upcoming Deadline • PR Newswire (US) • 03/29/2024 09:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 01:00:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 12:10:31 PM
- Plug Highlights Year of Strategic Growth and Advancements in Accelerating the Green Hydrogen Economy • GlobeNewswire Inc. • 03/01/2024 12:00:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/29/2024 09:02:16 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/23/2024 10:30:04 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 02/23/2024 10:29:30 PM
- Plug and Uline Expand Partnership to Supply Hydrogen and Fuel Cells at Four Additional Sites • GlobeNewswire Inc. • 02/23/2024 12:00:00 PM
- Plug Finalizes Contract to Support A Major U.S. Automobile Manufacturer’s Material Handling Operations • GlobeNewswire Inc. • 02/21/2024 12:00:00 PM
- Plug to Announce 2023 Fourth Quarter and Year-End Results • GlobeNewswire Inc. • 02/21/2024 12:00:00 PM
- Plug Announces Strategic Expense Reduction Plan to Save More Than $75 Million Annually • GlobeNewswire Inc. • 02/14/2024 12:00:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM