Is Plug Power Inc. (PLUG) Being Underestimated by Analysts?

Analysts at Oppenheimer, assumed coverage of Plug Power Inc. (NASDAQ:PLUG) with Outperform recommendation, according to their opinion released on August 23. FBR & Co. analysts again handed out a Outperform rating to PLUG stock but they lifted target price for the shares in a flash note to investors on July 25. The price target has been raised from $3 to $3.50. FBR & Co., analysts launched coverage of PLUG stock with a Outperform rating, according to their flash note to investors on July 25. Analysts at ROTH Capital downgraded the stock to a Sell call from its previous Neutral stance, in a research note that dated back to May 17.

The number of Plug Power Inc. (NASDAQ:PLUG) shares shorted has climbed by 2,064,035 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a increase in total short interest for PLUG, to 36,296,949, a surge of 6.03% since December 14th. Average daily volume for Plug Power Inc. at the December 31st settlement jumped to 5,158,772, as compared to 2,320,927 at the December 14th report. That brought days to cover to 7.035967, a 52.3% decrease from the 14.74967 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the PLUG stock we see that the average analyst recommendations at 0 suggests selling these shares.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Plug Power Inc. (NASDAQ:PLUG)’s prospects. The earliest insider trade took place on 10/15/2018. Conway Gerard L Jr parted with a total of 100 thousand shares of company at average share price of $1.86. The total for the sales was set at $186 thousand. After this transaction, the GC, Corp Secretary & Senior VP account balance stood at 10.52 thousand shares. The stock lost -20.43 percent since that insider sale. On 09/12/2018, Graves Gregory B, Director, sold 31.34 thousand shares at a price per share of $1.73. This removed 54.22 thousand shares from the insider’s fortune and the stock saw a -14.45 percent retreat in value since the news became public. This transaction left 43.3 thousand shares in the Director account. On 09/22/2017, Director Air Liquide Investissements D’ performed a sale transaction worth $11.65 thousand. This sale at $2.4 each has eliminated 4.86 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -38.33 percent decrease since the transaction was reported. The insider now is left with 39.32 thousand shares remaining in the account. Mcnamee George C, who performs the Director job, bought 200 thousand shares for $440 thousand. The acquisition occurred on 09/15/2017 was priced at $2.2 per share. The share price plunged -32.73 percent since the reporting date. Mcnamee George C now left with a stake of 661.13 thousand PLUG stock worth $978.47 thousand after the insider buying.

Plug Power Inc. (PLUG) is expected to jump by 103.38 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $4-month high price target. This represents a whopping 170.27 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $3, which represents a return potential of 102.7 percent when compared to the closing price of the stock of $1.48 on Friday, January 11. The lowest price target for the stock is $1.3 — slightly more than -12.16 percent from PLUG’s current share price.

The shares are currently floating around the first support level of $1.4. Below this, the next support is placed in the zone of $1.31. Till the time, the PLUG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.2 on daily chart, which may remain a cause for concern. If the price breaks below $1.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.53 mark may result into a pull-back move towards $1.57 level.

PLUG shares accumulated 0.03 points or 2.07 percent on Friday to $1.48 with a heavy trade volume of 4.352 million shares. After opening the session at $1.45, the shares went as high as $1.49 and as low as $1.36, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $338 million and now has 228.65 million shares outstanding. Plug Power Inc. (PLUG) stock has lost -1.33 percent of market value in 21 trading days.

PLUG stock has a trailing 3-year beta of 2.02, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.37 a share in the trailing twelve months. The stock’s value has surged 19.35 percent year to date (YTD) against a decline of -36.75 percent in 12 month’s time. The company’s shares still trade -38.84 percent away from its 1-year high of $2.42 and 49.62 percent up from 52-week low of $0.99. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Plug Power Inc. (PLUG) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PLUG operates in has an average P/E of 18.58. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 2.31 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.05. -1.7 percent is the gross profit margin for Plug Power Inc. and operating margin sits at -52.8 percent. Along with this, the net profit margin is -55.3 percent.

PLUG will be showing off its Q4 earnings on March 07. Analysts are forecasting revenue to climb 79.2 percent to $60.33M in the next fiscal quarter, while earnings are seen soaring by nearly -33.33 percent to -$0.06 per share. History has shown that shares in Plug Power Inc. have gone down on 26 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.07 per share, better than the -$0.08, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $55.3M, better than the $50.46M analysts expected. Earnings are estimated to increase by -88.7 percent this year, 32.4 percent next year and continue to increase by 25 percent annually for the next 5 years.