Shares of Plug Power Inc (NASDAQ:PLUG) are trading higher Friday. The hydrogen fuel cell company's stock has seen a 64% monthly gain as investors have largely shrugged off recent dilution concerns in favor of positive Wall Street sentiment and encouraging fundamental news.
What To Know: Thursday’s rally was largely driven by a series of analyst upgrades. On Monday, Susquehanna raised its price target on PLUG to $1.80. Jefferies followed on Wednesday, maintaining a Hold rating but nearly doubling its price target from 90 cents to $1.60.
This optimism overshadowed fears from a July 9 prospectus filing which detailed the potential resale of 31.5 million shares by a stockholder.
The analyst confidence is supported by key strategic developments. Earlier this month, Plug announced a multi-year enhanced supply agreement with a major industrial gas partner through 2030. The deal is expected to significantly reduce hydrogen supply costs, directly improving Plug's margins and cash flow.
This, along with a federal extension of the 45V clean hydrogen tax credit and a 650,000-share purchase by CFO Paul Middleton in June, signals growing operational and executive confidence.
Investors appear to be prioritizing these strategic wins over the potential dilution overhang, setting a bullish tone as all eyes now turn toward the company's second-quarter earnings release scheduled for August.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which evaluate companies across four critical factors, Plug Power presents a distinct profile. The company’s strongest attribute is its Value score, which stands at a high 73.63, suggesting that the stock may be undervalued relative to its peers based on key financial metrics.
Conversely, PLUG scores very poorly on forward-looking and performance-based indicators. It has a low Momentum score of 17.96 and an even lower Growth score of 15.39, indicating weak recent price action and sluggish business growth.
Price Action: According to data from Benzinga Pro, PLUG shares are trading 2.82% higher to $1.81 Friday afternoon. The stock has a 52-week high of $3.32 and a 52-week low of $0.69.
Read Also: Bloom Energy Stock Jumps On Deal To Power Oracle’s AI Data Centers
How To Buy PLUG Stock
By now you're likely curious about how to participate in the market for Plug Power – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Plug Power, which is trading at $1.8 as of publishing time, $100 would buy you 55.56 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
Image: Shutterstock
