Shareholders in Plug Power (PLUG -2.24%) 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.
Along with the recent slide in the share price, today brought an analyst upgrade for fellow alternative energy name Bloom Energy (BE -1.52%), 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.
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.