Why Plug Power Inc Shares Are Plunging

Plug Power, Inc. PLUG shares are trading lower Friday after the company reported worse-than-expected third-quarter financial results on Thursday.

The Details:

Plug Power reported quarterly losses of 47 cents per share, missing the consensus estimate of 30 cents by 56.67% and representing a 56.67% increase over losses of 30 cents per share year-over-year. The company also reported quarterly sales of $198.71 million, missing the analyst consensus estimate of $237.92 million by 16.48%.

Plug Power said it expects to generate losses for the foreseeable future, and existing cash and available-for-securities and equity securities will not be sufficient to fund operations through the next year.

Plug Power said, “These conditions and events raise substantial doubt about the company's ability to continue as a going concern.”

Plug Power said that management is evaluating options to enhance its liquidity position, including the sale of securities, the incurrence of debt or other financing alternatives.

Several analysts updated their coverage on Plug Power following the earnings report:

• RBC Capital analyst Chris Dendrinos downgraded Plug Power from Outperform to Sector Perform and lowered the price target from $12 to $5.
• Truist Securities analyst Jordan Levy maintained Plug Power with a Hold and lowered the price target from $8 to $6.
• Susquehanna analyst Biju Perincheril maintained Plug Power with a Positive and lowered the price target from $13 to $9.

Shares of PLUG are dropping on heavy trading volume Friday with more than 62.3 million shares already traded in session. According to data from Benzinga Pro, the stock's 100-day average volume is 21.349 million shares, and 24.22% of available shares are being sold short.

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PLUG Price Action: According to Benzinga Pro, shares are down 34% at $3.92 at the time of publication.

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