Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Plug Power's Shares Popped 10.1% Today

By Travis Hoium - Nov 13, 2019 at 8:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst upgrade helped this emerging energy stock today.

What happened

Shares of Plug Power ( PLUG -4.25% ) jumped as much as 12.1% in trading Wednesday after releasing third-quarter results. Shares closed up 10.1% for the day on more than four times the normal volume.

So what

Revenue was up 6% over a year ago to $56.4 million, and net loss rose from $15.6 million a year ago to $21.2 million, or $0.09 per share. On an adjusted basis, the loss was $0.08 per share, which met analyst expectations.

Hydrogen illustration made of grass floating in a field.

Image source: Getty Images.

Earnings were decent, but what really helped the stock was a rating upgrade by Craig Irwin at Roth Capital. He now has a buy rating on the stock and set his price target to $6 per share, nearly double where the stock currently trades. He said shares have reached an "inflection point," and traders certainly ran with that sentiment.

Now what

Along with earnings, management said it has a plan to hit $1 billion in gross billings in five years and $200 million of annual adjusted EBITDA. The hydrogen fuel cell manufacturer barely broke even on an adjusted EBITDA basis last quarter, generating $2.5 million.

I would take any analyst rating or management prediction with a grain of salt because Plug Power has long underperformed even its own expectations. For example, in 2013 management predicted that Plug Power would be EBITDA breakeven by mid-2014, a feat the company still hasn't hit on a consistent basis five years later. Beware of buying into a company that has a long history of broken promises.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Plug Power Inc. Stock Quote
Plug Power Inc.
PLUG
$39.85 (-4.25%) $-1.77

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
673%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.