FuelCell – Why Plug Energy Stock Popped After FuelCell’s Earnings
Shares of hydrogen gas cell firm Plug Energy (NASDAQ:PLUG) powered larger in Friday buying and selling, finally closing the day up 5%.
At first look, that appears curious. In spite of everything, Marketwatch headlined this morning with a narrative on how CEO Andrew Marsh simply made greater than $36 million shopping for Plug Energy stock for about 1/25th of its market value by exercising stock choices — then circled and bought these shares the exact same day.
At first look, that does not sound significantly promising for the corporate. Had Marsh exercised his choices and held onto his stock, he would have elevated his possession stake within the firm by 76.5% — and demonstrated important confidence that its stock would go larger. As a substitute, he selected to commerce these shares for cash simply as quickly as he might.
Buyers did not observe the CEO’s instance, nonetheless, and one motive may be the earnings that rival FuelCell Vitality (NASDAQ:FCEL) reported earlier than the bell Thursday.
In that report, FuelCell exulted over a 54% enhance in This autumn revenues. Though the corporate’s losses nearly doubled within the quarter, traders are overlooking that fault and specializing in the income development as an alternative, which confirmed a sharply accelerating enterprise through which gross sales enormously outpaced their ranges from earlier within the yr. FuelCell additionally highlighted “important market alternatives that we consider lay earlier than us,” phrases that Plug Energy traders may be taking as making use of to their very own firm as nicely.
At first, it regarded like traders may react poorly to FuelCell’s information. The stock opened decrease after the report was launched. However by the tip of Thursday buying and selling, FuelCell shares have been up by a wholesome 3.2% — they usually gained almost 5% extra on Friday. Plug Energy stock moved in tandem with its peer, gaining 1.9% Thursday, and following it larger Friday.
Now, Plug Energy would not report its personal earnings till March 3, however traders will not have to attend until then to get their subsequent dose of company-specific information. On Friday, it delivered a press launch reminding traders that it has a “enterprise replace convention name” scheduled for Tuesday, now set to start at 8:30 a.m. EST. Along with outlining the corporate’s plans for 2021, Plug Energy promised to launch preliminary outcomes for 2020 as nicely.
One path or one other, count on Plug Energy stock to maneuver considerably on Tuesday.