What's Going On With Plug Power Stock?

Plug Power Inc PLUG shares are trading lower by 1.95% to $6.40 Thursday afternoon. The stock is falling during Thursday's session after JP Morgan analyst Bill Peterson maintained shares with an Overweight and lowered the price target from $14 to $12.

Shares also marked a new 52-week low this week following a price target cut from Truist Securities last Friday. Additionally, stocks across sectors are lower Thursday amid recent, ongoing strength in Treasury yields.

Why It Matters

When Treasury yields rise, the return on safer investments like government bonds also increases. This can make investors more inclined to move their money out of riskier assets like stocks and into bonds. Plug Power, as a growth-oriented technology company, may be perceived as riskier compared to government bonds.

Therefore, when yields on those bonds rise, investors may be more likely to sell Plug Power shares and buy bonds instead.

Higher Treasury yields can also impact the way investors value companies. Stocks are often valued based on their future cash flows, and when Treasury yields rise, the discount rate used in valuation models increases. This can lead to lower present values for future cash flows.

According to data from Benzinga Pro, Plug Power has a 52-week high of $22.72 and a 52-week low of $6.18.