Plug Power Stock Is Tumbling Thursday: What’s Going On? – Plug Power (NASDAQ:PLUG)

Plug Power Inc PLUG shares are trading lower Thursday after the company filed for an offering of up to $1 billion.

What Happened: In a new regulatory filing on Wednesday, Plug Power said it entered into an at market issuance sales agreement with B. Riley Securities in which the company may offer and sell up to $1 billion worth of its common stock from time to time.

The news comes as Plug Power shares fell to new 52-week lows on Wednesday. The stock has been trending lower since the company reported third-quarter results and issued a “going concern” warning.

Analysts have also become more cautious on Plug Power stock in recent weeks.

Susquehanna analyst Biju Perincheril downgraded Plug Power from Positive to Neutral last week, citing near-term uncertainty including delays related to the company’s green hydrogen production facility and concerns over the company’s ability to secure financing for its growth plans. 

On Thursday, KeyBanc analyst Sangita Jain predicted that the offering is likely to continue to pressure the stock as investors remain concerned about the aforementioned financing warning.

Plug Power isn’t expected to report fourth-quarter earnings until next month, but the company is set to provide a business update on Jan. 23.

Jain expects Plug to provide more details on the offering and its current financial standing. The KeyBanc analyst also anticipates an updated fourth-quarter outlook.

See Also: Jim Cramer Says Buy This Utilities Stock Down 6% Over Past 6 Months, Calls Bunge A ‘Battleground’

PLUG Price Action: Plug Power shares were down 14.8% at $2.33 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Plug Power.

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