Plug Power Share Forecast February 2022 – Time to Buy PLUG?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of hydrogen fuel-cell developer Plug Power (NASDAQ: PLUG) are in the green today, after closing at $21.87 as of January 31st (19:59 EST). Plug Power is the leading developer of hydrogen fuel cells in the U.S. The company has failed to live up to its potential and its expectations and has disappointed its investors.
Plug Power – Technical Analysis
The financial statement released by Plug Power indicates that the market cap of the company is at $12.605 billion with total assets worth $5.74 billion. Revenue for 2020 was at $306.46 million with a profit margin of -194.53% compared to $229.97 million in 2019.
Oscillators for Plug Power such as Relative Strength Index (14)(40.58), Stochastic %K (14, 3, 3)(22.67), Commodity Channel Index (20)(−30.83), Average Directional Index (14)(42.40) and Awesome Oscillator(−6.23) re neutral. On the other hand, Moving averages such as Exponential Moving Average (100)(29.37), Simple Moving Average (100)(30.89), Exponential Moving Average (200)(29.84) and Simple Moving Average (200)(29.38) are indicating a sell action.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Plug Power was founded in 1997. The company introduced 125 kW Progen fuel cell engines for class 6, 7 & 8 trucks and heavy-duty off-road equipment back in February 2020. It secured investment from SK Group, a major South Korean company worth $1.5 billion for a ten per cent share in January 2021. As part of the deal, the company will form a joint venture company in South Korea to supply hydrogen fuel cell products. It also signed a memorandum of understanding with French automobile manufacturer Renault in the same month.
Plug Power filed a Notification of Late Filing with the U.S. Securities and Exchange Commission on March 2nd, 2021. This was due to the company not being able to timely file its annual report for the period ended December 31, 2020. The company is also facing an ongoing shareholder class action lawsuit for securities fraud over alleged misrepresentations and/or failures to disclose its inability to timely file its 2020 annual report among other allegations.
Plug Power along with Orascom is building the world’s largest green hydrogen and green ammonia project in Egypt. It will produce nitrogen fertilizer for Orascom’s Fertiglobe subsidiary. North America’s largest green hydrogen project in New York State has also selected Plug Power. The project will power material handling machines, commercial fleets, and drones.
Should You Buy PLUG Shares?
Plug Power has a $3.4 billion cash horde sitting in its bank account, with just $124 million in long-term debt. It just has $1 billion worth of liabilities. This was possible due to the meme stock trading frenzy last year that sent certain stocks soaring, including Plug Power. Analysts predict that the fuel cell market could grow from $1.1 billion last year to $300 billion by 2030.
However, investors also have to take into account Plug Power’s history of broken promises. Its latest guidance also does not inspire confidence in investors. The company expected to generate 30% in gross margin by 2024 in June last year. They moved this target to 2025 without giving any proper explanation.
While it is true that Plug Power has established itself as an early leader in the green hydrogen power market, the market is still young. Investors should expect some big twists and turns, and the company’s growth-dependent valuation opens the door for volatile trading. Considering this now is not the time to buy Plug Power shares.
Buy RBLX Stock at eToro from just $50 Now!
