Plug Power Inc. (NASDAQ:PLUG) Stock Price is Showing a Negative Change; Shift in Trade Volume May Make Observed Price Movement More Significant

Shares of Plug Power Inc. (NASDAQ:PLUG) tumbled -8.820% in morning trade Tuesday, soon after a provider of alternative energy technology focused on the design, development, commercialization and manufacture of hydrogen fuel cell systems used for the industrial off-road market and the stationary power market stated a loss of $42.6M in its second quarter.

The Latham, New York-based Company said it had a loss of 19 cents per share. Losses, adjusted for non-recurring costs, came to 10 cents per share. The results fell short of Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 7 cents per share.

The alternative energy company posted revenue of $22.6M in the period, also missing Street forecasts. Four analysts surveyed by Zacks predictable $28.5M.

The stock closed its last trade at the price of $2.169, while exchanging hands with the volume of 10931269 shares contrast to its average daily volume of 5.76M shares. Trading volume is an important technical indicator a shareholder uses to confirm a trend or trend reversal. It is generally higher when the price of a security is changing, as the strength of any given price movement is measured mainly by the volume and shifts in trade volume can make observed price movements more significant. News about a company’s financial status, products, or plans, whether positive or negative, will typically result in a temporary increase in the trade volume of its stock. Higher volume for a stock is also an indicator of higher liquidity in the market. For institutional shareholders who wish to sell a large number of shares of a certain stock, lower liquidity will force them to sell the stock slowly over a longer period of time, to avoid losses because of slippage. The stock, as of recent close, has shown weekly downbeat performance of -6.056% which was maintained at 6.90% in 1-month period, and is up 80.82% in this year. The company now has a market value of $484.93M.

The stock, after recent close, is 2.23% below their SMA 50 and -2.16% from SMA20 and is 32.07% above than SMA200. 18.19% shares of the company were owned by institutional investors. The company has 5.65 value in price to sale ratio while price to book ratio was recorded as 6.78. It beta stands at 1.78.

The average 12 month target price among brokers that have covered the stock in the last year is $3. Analyst mean recommendation for this stock stands at 2.298. Analyst recommendations as stated on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a buy rating, 3 a hold rating, and 5 a sell rating. The consensus recommendation is the average rating on a stock by the analyst community.

James Calvert

James Calvert is an independent capital market analyst and a Finance Writer. He covers news about services Companies. Before joining Stocks News Times, he was a freelance content writer. He has high-level copywriting experience and particularly practiced in proofreading and editing.

Leave a Reply

Your email address will not be published. Required fields are marked *