Plug Power at $2.26 as short interest tops 20%

Plug Power Inc. shares traded near $2.26 after forming an ascending channel that is part of a bearish flag pattern. Short interest estimates range from about 20% to 23%. The stock is roughly 47% below its May high and the company’s market value is about $3 billion. Technical indicators show the shares below their 50-day moving average and the Percentage Price Oscillator below neutral.

The company reported second-quarter revenue of $178 million, up from $173 million a year earlier. First-half revenue rose to $341 million from $307 million over the same period. Plug Power recorded a net loss of $190 million in the quarter, a narrower deficit largely driven by a change in the fair value of convertible debt instruments. Interest expense during the quarter exceeded $16 million.

Revenue from services related to fuel cells increased to $29.8 million from $16.3 million a year earlier and totaled more than $51 million for the first six months. Power purchase agreements generated over $26 million in the quarter, and fuel deliveries to customers exceeded $39 million. Equipment sales declined to $81.8 million.

Outstanding shares rose to about 1.39 billion from roughly 1.12 billion a year earlier; the company had about 577 million shares in 2022. Short interest and the higher share count reflect investor concern about ongoing dilution despite the revenue gains. Management has highlighted demand from large customers such as Amazon and Walmart as supporting the services and fuel businesses.

Analyst projections forecast revenue of about $819 million for the coming year, an increase of roughly 15%, and around $968 million the following year. Market technicians identify potential support levels at $1.87 and, if the flag pattern breaks further, $1.50.