Plug Power Stock Is Hitting New 52-Week Lows: What's Going On?

Plug Power Inc PLUG shares are trading lower Wednesday, adding to losses of more than 25% over the last week. Here’s a look at what’s going on.

What To Know: Plug Power shares have been trending lower since Susquehanna downgraded the stock last week.

Susquehanna analyst Biju Perincheril downgraded Plug Power from Positive to Neutral last Thursday, citing near-term uncertainty including delays related to the company’s green hydrogen production facility and concerns over the company’s ability to secure financing for its growth plans. 

Perincheril lowered his revenue estimates for the fourth quarter to $352 million from $427 million. The analyst also cut 2024 expectations from $1.8 billion to $1.6 billion and 2025 estimates from $3 billion to $2.5 billion and recommended moving to the sidelines until there is more clarity on the financing front.

Plug Power shares fell nearly 65% last year, while the S&P 500 rallied approximately 24%. The selloff accelerated after the company reported third-quarter results and issued a “going concern” warning.

The company isn’t expected to report fourth-quarter earnings until next month, but on Tuesday, Plug said it will provide a business update on Jan. 23. During the call, CEO Andy Marsh and CFO Paul Middleton will provide an update on business operations and answer questions.

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PLUG Price Action: Plug is making new 52-week lows on Wednesday. The stock was down 5.92% at $2.86 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Plug Power.