Plug Power Inc. [NASDAQ: PLUG] stock went on an upward path that rose over 13.71% on Friday, amounting to a one-week price increase of more than 58.58%. The company report on January 7, 2021 that Plug Power and South Korean SK Group to Form a Strategic Partnership to Accelerate Hydrogen Economy Expansion in Asian Markets; Plug Power to Receive $1.5 Billion Strategic Investment From SK Group.
Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen fuel cell and fueling solutions enabling e-mobility, and SK Group, one of the leading South Korean business groups, announced that the companies intend to form a strategic partnership to accelerate hydrogen as an alternative energy source in Asian markets. Through this partnership, Plug Power and SK Group intend to provide hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to the Korean and broader Asian markets. In conjunction with this partnership, the companies have also entered into a definitive agreement for SK Group to make a $1.5 billion strategic investment in Plug Power and are announcing a plan to form a joint venture company in South Korea to support the rapidly growing Asian Market. The combination of SK Group’s significant presence and leadership throughout Asia’s energy industry and its strategic direction on portfolio transformation to green via hydrogen economy with Plug Power’s leadership in hydrogen fuel cell systems, fueling stations and green hydrogen generation represents a powerful team to accelerate the growth of hydrogen economy in Asian markets.
In January 2019, the South Korea government announced the Hydrogen Economy Roadmap through 2040, with ambitious goals, including: over 5MM tons of hydrogen per year, over 6MM fuel cell EVs, 1,200 refilling stations and 15 GW of fuel cell power generation, and expects the cumulative economic value of its hydrogen economy to reach ~$40Bn by 2040. Plug Power has proven its ability to scale a hydrogen business in North America as a global leader in the hydrogen economy. The opportunity to partner with SK presents an attractive and timely opportunity to establish a foothold in this market with one of South Korea’s leading industrial conglomerates,.
Over the last 12 months, PLUG stock rose by 1227.78%. The one-year Plug Power Inc. stock forecast points to a potential downside of -37.51. The average equity rating for PLUG stock is currently 1.80, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $20.93 billion, with 415.60 million shares outstanding and 397.09 million shares in the current float. Compared to the average trading volume of 34.77M shares, PLUG stock reached a trading volume of 99620468 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Plug Power Inc. [PLUG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PLUG shares is $39.11 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PLUG stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
H.C. Wainwright have made an estimate for Plug Power Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 07, 2021. While these analysts kept the previous recommendation, B. Riley Securities raised their target price from $18 to $24. The new note on the price target was released on November 10, 2020, representing the official price target for Plug Power Inc. stock. Previously, the target price had yet another raise to $14, while Morgan Stanley analysts kept a Overweight rating on PLUG stock.
The Average True Range (ATR) for Plug Power Inc. is set at 3.78, with the Price to Sales ratio for PLUG stock in the period of the last 12 months amounting to 66.64. The Price to Book ratio for the last quarter was 32.39, with the Price to Cash per share for the same quarter was set at 1.15.
PLUG Stock Performance Analysis:
Plug Power Inc. [PLUG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 58.58. With this latest performance, PLUG shares gained by 87.11% in over the last four-week period, additionally plugging by 478.23% over the last 6 months – not to mention a rise of 1227.78% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PLUG stock in for the last two-week period is set at 84.16, with the RSI for the last a single of trading hit 87.66, and the three-weeks RSI is set at 81.60 for Plug Power Inc. [PLUG]. The present Moving Average for the last 50 days of trading for this stock 26.86, while it was recorded at 40.16 for the last single week of trading, and 13.32 for the last 200 days.
Insight into Plug Power Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Plug Power Inc. [PLUG] shares currently have an operating margin of -21.73 and a Gross Margin at +12.15. Plug Power Inc.’s Net Margin is presently recorded at -37.12.
Return on Total Capital for PLUG is now -10.21, given the latest momentum, and Return on Invested Capital for the company is -21.03. Return on Equity for this stock declined to -100.44, with Return on Assets sitting at -14.72. When it comes to the capital structure of this company, Plug Power Inc. [PLUG] has a Total Debt to Total Equity ratio set at 395.46. Additionally, PLUG Total Debt to Total Capital is recorded at 79.82, with Total Debt to Total Assets ending up at 69.65. Long-Term Debt to Equity for the company is recorded at 342.43, with the Long-Term Debt to Total Capital now at 68.53.
Reflecting on the efficiency of the workforce at the company, Plug Power Inc. [PLUG] managed to generate an average of -$102,353 per employee. Receivables Turnover for the company is 6.06 with a Total Asset Turnover recorded at a value of 0.40.Plug Power Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.90.
PLUG Stock EPS
With the latest financial reports released by the company, Plug Power Inc. posted -0.07/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -16.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PLUG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Plug Power Inc. go to 25.00%.
Plug Power Inc. [PLUG] Insider Position Details
There are presently around $11,379 million, or 52.70% of PLUG stock, in the hands of institutional investors. The top three institutional holders of PLUG stocks are: BLACKROCK INC. with ownership of 41,154,255, which is approximately 22.756% of the company’s market cap and around 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 27,182,136 shares of the stock with an approximate value of $1.46 billion in PLUG stocks shares; and D. E. SHAW & CO., INC., currently with $986.4 million in PLUG stock with ownership of nearly 39.542% of the company’s market capitalization.
Positions in Plug Power Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 208 institutional holders increased their position in Plug Power Inc. [NASDAQ:PLUG] by around 63,623,935 shares. Additionally, 97 investors decreased positions by around 30,960,050 shares, while 45 investors held positions by with 117,013,832 shares. The mentioned changes placed institutional holdings at 211,597,817 shares, according to the latest SEC report filing. PLUG stock had 99 new institutional investments in for a total of 12,996,245 shares, while 34 institutional investors sold positions of 2,277,863 shares during the same period.