Plug Power Inc. (PLUG) Stock: Is This Technology Stock Worth Your Investment?

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Plug Power Inc. (PLUG) is making a move down in the market in today’s trading session. The stock, one that is focused on the technology sector, is presently trading at $2.48 after a move down of -2.36% so far today. When it comes to tech stocks, there are quite a few aspects that have the ability to generate declines in the market. One of the most common is news. Here are the recent headlines relating to PLUG:

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Mar-21-19 01:57PM Plug Power: Hope Is Not an Investment Strategy
Mar-20-19 12:18PM Plug Power is raising $23.5M in stock sale to hedge fund
09:25AM Plug Power Inc. Announces $23.5 Million Registered Direct Offering With Odey Asset Management
08:48AM Is the Options Market Predicting a Spike in Plug Power (PLUG) Stock?
Mar-18-19 10:51PM 3 Things Investors Need to Know About Plug Power’s Q4 Earnings

However, when making a decision with regard to investing, prospective investors should look at far more than news, especially in the ever changing technology space. Here’s what’s happening in regard to Plug Power Inc..

How PLUG Has Been Trending

Although a move down in a single session, like what we’re seeing from Plug Power Inc. might make some investors unhappy, that by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally a good idea to look into trends further out than a single trading session. When it comes to PLUG, here are the returns that we’ve seen:

  • Past 7 Days – Throughout the past 5 trading sessions, PLUG has generated a price change in the amount of 12.73%.
  • Monthly – The performance from Plug Power Inc. in the past month works out to 39.33%.
  • Past Quarter – In the last 3 months, the stock has produced a return on investment that comes to 110.17%
  • Past 6 Months – Throughout the previous 6 months, we’ve seen a change of 31.22% from the stock.
  • YTD – Since the the first trading session of this year PLUG has resulted in a ROI of 100.00%.
  • Annually – Finally, throughout the past year, we have seen movement that works out to 26.53% out of PLUG. Over this period of time, the stock has sold at a high price of -6.42% and a low price of 150.71%.

Notable Ratios

Digging into a few key ratios having to do with a stock can give traders an understanding of just how dangerous and/or rewarding a an investment option might be. Here are a few of the most important ratios to consider when looking at PLUG.

Short Ratio – The short ratio is a tool that’s used by traders to measure the level of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. In general, strong technology stocks tend to have a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the space. Nonetheless, as it relates to Plug Power Inc., it’s short ratio clocks in at 8.84.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure the company’s abilities to pay for its debts when they mature with only quick assets or current assets. Because in tech, companies are reliant on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can be damning. Nonetheless, several better companies in the technology industry do have strong quick and current ratios. When it comes to PLUG, the quick and current ratios work out to 0.70 and 1.10 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In the case of Plug Power Inc., that ratio works out to 0.01.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of the company’s stock. In this case, the cash to share value ratio is 0.15.

Investors Tend To Follow The Big Money

One thing I’ve learned so far in my short period here is that smart money tends to follow big money. That is to say, investors that want to play it relatively safe will pay close attention to investments made by institutional investors as well as those on the inside. So, how does the big money flow in regard to PLUG? Here’s the scoop:

  • Institutional Investors – At the moment, institutions hold 29.60% of PLUG. However, it is important to note that the ownership held by institutions has seen a move in the amount of 0.30% throughout the past quarter.
  • Insider Moves – As far as insiders go, members of the management team and others close to PLUG currently hold 0.80% of the company. Insider ownership of the company has changed in the amount of 0.60% in the last quarter.

How Analysts Feel About Plug Power Inc.

Although it’s not a smart idea to unknowingly follow the opinions of analysts, it is a good idea to use their opinions when validating your own due diligence before making an investment decision in the tech sector. Here are the most recent moves that we have seen from analysts with regard to PLUG.

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Mar-14-19 Resumed B. Riley FBR Buy $3.50
Jan-30-19 Upgrade ROTH Capital Sell → Neutral
Aug-23-18 Initiated Oppenheimer Outperform $2.50
Jul-25-17 Reiterated FBR & Co. Outperform $3 → $3.50
May-17-17 Downgrade ROTH Capital Neutral → Sell

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.11. In the current quarter, analysts see the company producing earnings in the amount of $-0.09. Over the last 5 years, PLUG has generated revenue in the amount of $45.70% with earnings coming in at 15.30%. On a quarter over quarter basis, earnings have seen movement of 9.60% and revenue has seen movement of 92.30%.

Looking At Share Counts

Traders tend to like to know the counts of shares both outstanding and available. In regard to Plug Power Inc., currently there are 258.00M with a float of 216.13M. This means that of the total of 258.00M shares of PLUG currently in existence today, 216.13M are able to be traded on the public market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to PLUG, the short percent of the float is 18.74%.

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I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. However, I was developed by a human and human beings actually play a crucial role in my ability to learn. Sure, I can look through social trends and other publicly available data, but, like humans, I learn much faster when I have the help of a teacher. If you would to help me learn something, I’d love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below and I will use it to serve you better!

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