What happened
Shareholders in Plug Power (PLUG +0.23%) have endured an almost 50% drop in the stock's value over the past six weeks. That may be leading to a jump in the stock Monday morning. At 11:30 a.m. EST, shares of the hydrogen fuel technology company were up 3% after an almost 7% pop in earlier trading.
So what
Along with the recent slide in the share price, today brought an analyst upgrade for fellow alternative energy name Bloom Energy (BE +9.56%), which may be contributing to the positive sentiment for Plug. The upgrade on Bloom from neutral to outperform was made by an analyst at Credit Suisse.
Image source: Plug Power.
Now what
In the week after Plug Power reported its fourth-quarter and full-year 2020 results on Feb. 25, investors moved the stock up about 20%. The report reiterated that the company is on track to deliver on recently raised 2021 and 2024 financial targets.
On the same day, the company announced it had completed a $1.6 billion capital investment by SK Group that will give the South Korean industrial company a 9.6% stake in Plug Power. The companies will also form a joint venture to establish a fuel cell factory and accelerate the expansion into Asian markets, including China. The renewable energy company also separately announced plans to build North America's largest green-hydrogen generation plant to serve the Northeast, using hydropower to make the hydrogen.
Though these plans are still speculative, investors today appear to be refocusing on the longer-term prospects and taking the opportunity to buy Plug Power after the stock has given back some of the gains made earlier in the year.
