Shares of Plug Power Inc (NASDAQ:PLUG) are trading lower Thursday morning as investors weigh a significant financing deal against recent operational and leadership news. Here’s what investors need to know.
What To Know: The hydrogen technology company’s stock fell after it announced a warrant inducement agreement on Wednesday. The deal allows an institutional investor to exercise warrants for 185.4 million shares at $2.00 each, providing Plug Power with roughly $370 million in immediate gross proceeds. However, it also grants new warrants that, if fully exercised, could raise an additional $1.4 billion, creating concerns about near-term shareholder dilution.
The pullback in shares follows a volatile week where the stock hit a 52-week high, lifted by a bullish analyst rating and the delivery of its first 10-megawatt electrolyzer to a key European project. The company also announced a leadership transition, naming Jose Luis Crespo president and successor to CEO Andy Marsh, effective upon the company’s 2025 annual filing.
Plug on Thursday announced that it will participate in two non-deal roadshows taking place this week in Paris and Boston. The company said the simultaneous investor meetings reinforce Plug’s ongoing commitment to open communication, disciplined execution and strong engagement with the financial community.
Benzinga Edge Rankings: According to Benzinga Edge rankings, the stock boasts a high Momentum score of 94.31, but scores low on Growth at 14.72.
PLUG Price Action: Plug Power shares were down 5.34% at $3.46 at the time of publication Thursday, according to Benzinga Pro. The stock is trading within its 52-week range of $0.69 to $4.58.
Plug Power stock is significantly above its 50-day moving average of $1.94, indicating a bullish trend in the medium term, but it remains well below its 200-day moving average of $1.61, suggesting potential resistance at higher levels.
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How To Buy PLUG Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Plug Power’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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