Plug Power Stock Sinks on Wider-Than-Expected Losses

Truist Securities lowered PLUG's price target to $11 from $16

Digital Content Manager
May 9, 2023 at 10:15 AM
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Plug Power Inc (NASDAQ:PLUG) reported wider-than-expected first-quarter losses of 35 cents per share before the open, though revenue rose more than 49% year-over-year to $210.29 million, easily besting analysts' estimates. Nevertheless, PLUG was last seen down 10.1% to trade at $8.35.

Truist Securities slashed its price objective to $11 from $16 in response. Analysts lean bullish on PLUG, with 13 of the 22 in question sporting a "buy" or better rating, indicating there's plenty of optimism left to unwind. Meanwhile, short interest added 14.1% during the last two reporting periods, and the 100.58 million shares sold short now make up 18.9% of the stock's available float.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Plug Power stock's 10-day call/put volume ratio of 3.95 stands higher than all but 2% of readings from the past 12 months, suggesting options traders have been optimistic. 

Drilling down to today's options activity, 11,000 calls and 5,596 puts have crossed the tape so far, or double the volume that's typically seen at this point. The most popular contract is the weekly 5/12 9-strike put, , followed by the 9-strike call in that series. 

It's worth noting the security's Schaeffer's Volatility Scorecard (SVS) of 94 out of 100 indicates it has exceeded option traders' volatility expectations during the past year -- a boon for buyers. 

Plug Power stock has been wrestling with a ceiling at the $9.50 level since mid-April, while overhead pressure at the 40-day moving average has been in place since late February. Year-over-year, the shares carry a hefty 49.8% deficit, with 32.5% shed in 2023.

 

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