Plug Power stock falls as short interest rises to 27.4%
Plug Power stock hit its lowest level since April, down about 45% from its peak, as short interest rose to 27.4% despite Q1 revenue increasing 22% to $163 million.
Shares of Plug Power fell to their lowest level since April, trading roughly 45% below this year’s high as short interest climbed to 27.4%. The moves came after the company reported first-quarter revenue of $163 million, up 22% year over year.
The stock reached a multi-month peak of $4.32 in May, then gave back most gains and slipped below key technical levels. The share price is trading under the 50- and 200-day exponential moving averages and has fallen beneath its January high of $2.66. The Relative Strength Index is approaching the traditional oversold level of 30.
Plug Power reported growth in its material handling and electrolyzer businesses. The company cited sales to large customers, including Amazon and Walmart, as contributors to revenue. Management reported an improvement in gross margin to negative 13% from negative 55% a year earlier, attributing the change to improved service execution, stronger sales and fuel sourcing efficiencies.
Hydrogen fuel sales rose 22% in the quarter. The company said hydrogen fuel margin improved by 54%. Plug Power reported it had deployed 320 MW of electrolyzer capacity worldwide and held an $8 billion project pipeline across industrial and energy markets.
Recent commercial activity includes a 50 MW electrolyzer order for an Australian project being developed by Orica and the commissioning of a 5 MW electrolyzer system at the Måde Power-to-X facility in Esbjerg, Denmark.
Wall Street analysts project annual revenue of about $813 million for this year, up about 14.5% from last year, and roughly $964 million in 2025.
On the balance sheet, Plug Power had $802 million in total cash at the end of the quarter, of which $223 million was unrestricted. The company said the remainder is restricted cash that is scheduled to be released at about $50 million per quarter over the next few years. With continued cash burn, the company may need to seek additional financing before year-end.
Traders and some analysts said the stock could remain under pressure until the company provides more detail on profitability and cash needs in its next quarterly report, possibly around Aug. 10.
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