Plug Power Stock News – Buy or Sell?

Plug Power stock (NASDAQ: PLUG) experienced significant volatility in July, which some investors see as an opportunity to buy at a lower price.

At the end of the day, Plug Power stock price was at $1.71, which opened at the same price with a bid of $1.80 and an ask of $ 1.63. Besides, the stock price changed with a minimum of $1.60 and $1.7250 at this day’s trading. Over the past 52 weeks, it has ranged from $1.60 to $8.80, underscoring its volatility. Today’s trading included 29,397,373 shares, which lag behind the site’s daily average of 36,365,570.

Furthermore, the current market capitalisation value of Plug Power is $ 1.417 billion. With a beta of 1. 78, the results indicate that the stock is more volatile than the overall market.

Plug Stock Price News

Plug stock price today has dropped to a 52-week low of $1.9, reflecting a 77.42% decline over the past year due to economic pressures and investor caution regarding the future of green energy solutions.

In other news, following its Q2 2024 earnings report, Plug Power had its price targets revised by multiple analyst firms.

Plug Power is struggling financially, with revenue dropping from $260 million to $143 million year-over-year. The company reported a $245 million operating loss in the second quarter and over $500 million in losses for the year. Additionally, it spent nearly $194 million on expansion, further straining its finances amid significant operational losses.

BTIG upheld a Buy rating for Plug Power. It increased its price target to $5.00, citing a rise in fuel cell demand.

Conversely, RBC Capital, Canaccord Genuity, and BMO Capital Markets reduced their price targets to $2.50, $2.50, and $1.80, respectively, expressing concerns about delays in revenue recognition and heightened cash burn.

Despite these obstacles, Plug Power has made notable strides in its operations. The company is near to completing 55 megawatts of electrolyses. They should yield around $70 million in total revenue.

Partnership with Olin Corporation regarding liquid hydrogen production in Louisiana lead to a $1.7 billion DOE loan.

Colin Angle was recently appointed to the Plug Power board. Dean Fullerton was appointed as COO, with a strong focus on strategic growth in the hydrogen sector. Plug Power Inc. concluded the commitments regarding the earlier disclosed resolution of a civil, administrative matter with the SEC in 2023. On

On August 30, 2024, the company confirmed to the SEC Staff that it had successfully addressed the obligations outlined in the SEC settlement, which involved thoroughly remedying its significant deficiencies.

PLUG/USD 5-Day Chart

Should You Invest in Plug Power?

In light of Plug stock news recent stock performance, a deeper dive using InvestingPro’s data and insights reveals several key takeaways.

With a market cap of $1.68 billion, the company’s financial health and share price performance are worth investors’ attention.

The data shows a striking 22.2% revenue decline over the last twelve months as of Q2 2024. Additionally, the gross profit margin of -79.8% reflects significant challenges in maintaining profitability.

An InvestingPro tip indicates that Plug Power is burning through cash quickly, which aligns with the observed revenue and profit margin figures. 

Furthermore, the company’s share price volatility is evident, with a 77.36% drop in total return over the same period. This volatility is further confirmed by another InvestingPro tip, which notes that the stock has suffered a sharp decline over the past week.

For investors looking to understand the nuances of Plug Power’s financial position, InvestingPro offers a comprehensive list of additional guidance. They provide information on the company’s ability to meet its short-term obligations with its liquid assets and a low free cash flow yield valuation.

Analysts’ Plug stock forecast projects a target price of $4.06, with estimates ranging from a maximum of $18.00 to a minimum of $1.50.

What is the PLUG Analyst Rating?

Analysts evaluating PLUG stock in the last three months predominantly supported a neutral outlook. Considering various perspectives, the collective assessment was determined to be neutral. It’s important to mention that this does not constitute trading advice, and personal analysis remains essential.

Plug Power Isn’t a Buy at Any Price

It’s simple to become swept away by the excitement around Plug Power. The company is developing a prominent hydrogen enterprise to take advantage of what may become a significant market in the future.

The company is still consuming significant cash to maintain and grow its operations. A turnaround doesn’t seem imminent, which may lead to further declines in its stock price. Therefore, purchasing shares at this low valuation may not be advisable, as Plug Power could potentially dilute its stock to the point of being worthless.

About the company

Plug Power, Inc. provides alternative energy technologies and focuses on the design, development, marketing and manufacturing of hydrogen and fuel cell systems used primarily in the material handling and stationary power markets. Its fuel cell systems will replace lead-acid batteries in forklifts and electric-powered material-handling vehicles that certain distribution and manufacturing companies use. The company is headquartered in Latham, New York, and was founded by Larry G. Garberding and George C. McNamee on June 27, 1997.

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