Plug Power (NASDAQ:PLUG) Stock Price Down 6.3% on Disappointing Earnings

Key Points

• Plug Power shares fell 6.3% after the company reported a quarterly loss of $0.12 per share, wider than analysts’ expected $0.07 loss.
• Quarterly revenue of $200.6 million topped estimates of $198.36 million, while the company reaffirmed its 15%–16% revenue-growth outlook and is targeting positive EBITDAS.
• Net cash usage declined to $28 million in the quarter and GenDrive deployments increased 110% year over year, though the company remains deeply unprofitable.

Plug Power, Inc. (NASDAQ:PLUG - Get Free Report)'s stock price traded down 6.3% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $1.36 and last traded at $1.4050. Approximately 16,877,780 shares were traded during trading, a decline of 76% from the average session volume of 70,778,336 shares. The stock had previously closed at $1.50.

The electronics maker reported ($0.12) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.05). Plug Power had a negative net margin of 220.59% and a negative return on equity of 56.01%. The business had revenue of $200.60 million for the quarter, compared to analyst estimates of $198.36 million.

Key Plug Power News

Here are the key news stories impacting Plug Power this week:

• Positive Sentiment: Plug Power reaffirmed its forecast for 15%–16% revenue growth, projected roughly $280 million in fourth-quarter revenue, and said it is targeting positive EBITDAS. Article: Plug reaffirms revenue growth and Q4 outlook
• Positive Sentiment: Cash use improved: net cash usage fell to $28 million in Q3, while GenDrive deployments rose 110% year over year to 1,136 units. These trends may support confidence in the company’s cost and operating-efficiency efforts. Article: Three takeaways for long-term investors
• Positive Sentiment: HC Wainwright reaffirmed its Buy rating and $7 price target, providing a bullish signal, although that target is an analyst forecast and not a guarantee. Article: HC Wainwright rating update
• Neutral Sentiment: Royal Bank of Canada maintained its Sector Perform rating and $2 target, indicating a more cautious view than HC Wainwright while still setting a target above the cited share price. Article: RBC rating update
• Negative Sentiment: Q3 adjusted loss was $0.12 per share, wider than the $0.07 loss analysts expected. The miss highlights that profitability remains a challenge despite better-than-expected revenue. Article: Q3 loss and revenue results

Wall Street Analysts Forecast Growth

Several analysts have issued reports on PLUG shares. KeyCorp restated a "sector weight" rating on shares of Plug Power in a report on Tuesday. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $2.00 target price on shares of Plug Power in a report on Tuesday. Wall Street Zen upgraded shares of Plug Power from a "strong sell" rating to a "sell" rating in a report on Saturday, October 17th. Susquehanna dropped their target price on shares of Plug Power from $2.50 to $1.75 and set a "neutral" rating on the stock in a research report on Wednesday, October 14th. Finally, Craig Hallum restated a "buy" rating on shares of Plug Power in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Plug Power currently has an average rating of "Hold" and a consensus price target of $3.29.

Insider Activity at Plug Power

In other news, insider Benjamin Haycraft sold 200,000 shares of Plug Power stock in a transaction on Friday, September 18th. The stock was sold at an average price of $2.14, for a total transaction of $428,000.00. Following the transaction, the insider owned 101,249 shares in the company, valued at approximately $216,672.86. The trade was a 66.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 241,935 shares of company stock valued at $509,397 over the last ninety days. Company insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Plug Power

A number of institutional investors have recently bought and sold shares of PLUG. BlackRock Inc. lifted its position in shares of Plug Power by 21.0% in the second quarter. BlackRock Inc. now owns 184,032,469 shares of the electronics maker's stock worth $498,728,000 after purchasing an additional 31,939,194 shares in the last quarter. State Street Corp lifted its position in Plug Power by 6.1% in the 2nd quarter. State Street Corp now owns 38,763,529 shares of the electronics maker's stock worth $105,049,000 after buying an additional 2,214,427 shares in the last quarter. Renaissance Technologies LLC lifted its position in Plug Power by 97.4% in the 1st quarter. Renaissance Technologies LLC now owns 27,738,500 shares of the electronics maker's stock worth $62,689,000 after buying an additional 13,685,900 shares in the last quarter. Handelsbanken Fonder AB boosted its stake in shares of Plug Power by 446.9% during the 2nd quarter. Handelsbanken Fonder AB now owns 19,014,270 shares of the electronics maker's stock valued at $51,529,000 after buying an additional 15,537,320 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Plug Power by 241.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 18,134,913 shares of the electronics maker's stock valued at $40,971,000 after buying an additional 12,820,616 shares during the period. 43.48% of the stock is currently owned by institutional investors and hedge funds.

Plug Power Stock Performance

The firm's fifty day moving average price is $1.76 and its 200 day moving average price is $2.36. The company has a current ratio of 2.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.29. The firm has a market capitalization of $1.95 billion, a PE ratio of -1.10 and a beta of 2.13.

About Plug Power

Plug Power Inc develops hydrogen fuel cell and hydrogen-generation solutions for businesses seeking alternatives to conventional power and fuel sources. Its offerings include fuel cell systems, electrolyzers that produce hydrogen, hydrogen storage and handling equipment, and related infrastructure and services.

The company's products are used in applications such as material-handling equipment, including warehouse forklifts, as well as stationary power and other industrial and mobility uses.

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