Buyers Return to Plug Power Inc (NASDAQ:PLUG)

Plug Power Inc (NASDAQ:PLUG)

Plug Power Inc (NASDAQ:PLUG) has borrowed an additional $20 million from the New York Green Bank – bringing its total indebtedness to the bank to $45 million. Last week, Plug Power Inc (NASDAQ:PLUG) jumped 15.09% in one trading session after announcing a new collaborative agreement with WalMart Stores Inc (NYSE:WMT). Previously the company had inked a deal with Amazon (NASDAQ:AMZN), and FedEx (NYSE:FDX).

Plug Power Inc (NASDAQ:PLUG)
Six month daily candlebar graph for $PLUG

Latham, NY-based Plug Power Inc (NASDAQ:PLUG) designs, develops, markets, and manufactures hydrogen fuel cell systems used for the material handling and stationary power markets in the United States. For WalMart and Amazon, Plug Power Inc is supplying fuel cells to power forklifts and other warehouse machinery. For FedEx, Plug Power Inc provided their proprietary ProGen engines for the delivery company’s electric vehicle fleet..

2017 revenues from each of the WalMart and Amazon deals are expected to reach between $70 and $80 million. However the loan was necessary according to Andy Marsh, CEO of Plug Power “Our amended credit facility provides Plug Power with access to additional strategic capital, improves the flexibility of our balance sheet, and ultimately reinforces our position to execute on our long-term growth strategy,” The loan comes with a steep interest rate of 11% and will mature in December of 2019.

Five investment firms follow Plug Power Inc (NASDAQ:PLUG). Three rate PLUG shares as a “Strong Buy”, while two rate the shares as a “Hold”. Their analyst’s consensus target price is $2.84 – about $0.50 higher than current trading levels. Plug Power Inc (NASDAQ:PLUG) has yet to post a profit but the losses shrink every year. In 2012 the per share loss was (-$0.93) but by 2016 it was (-$0.32). Sales originally had an upward trajectory. In 2012, sales were posted at $26.1 million and by 2015 sales were listed at $103.3 million, however in 2016 sales were a disappointing $85.9 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.