Why Is Plug Power (PLUG) Stock Up Today?

  • Plug Power (PLUG) is trending on news that DNB Asset Management increased its stake in the company.
  • A filing reveals that DNB’s stake in Plug Power exceeded 2 million shares.
  • PLUG stock jolted 8% to 9% higher as financial traders learned of DNB’s share position.
PLUG stock - Why Is Plug Power (PLUG) Stock Up Today?

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Plenty of investors are plugged into Plug Power (NASDAQ:PLUG) today, it seems. Why are they so enthused about the hydrogen fuel cell manufacturer? Most likely, they caught wind of a supersized fund’s massive position in PLUG stock.

After a wild and choppy 2022, it looks like some folks are preparing for Plug Power’s big comeback in 2023. Analysts on Wall Street, on average, expect the Plug Power share price to rally more than 60% over the next 12 months.

It’s possible that they’re anticipating a boost from a tax credit that Congress passed not long ago. It’s a tax credit for green hydrogen of up to $3 per kilogram, which already took effect starting Jan. 1.

Whether it’s because of the tax credit or some other reason, at least one big-money fund is apparently long and strong on Plug Power. A U.S. Securities and Exchange Commission (SEC) filing reveals that DNB Asset Management added a whopping 243,041 Plug Power shares to its position in 2022’s fourth quarter.

What’s Happening With PLUG Stock?

The response to this disclosure was immediate and powerful this morning. PLUG stock gained 8% to 9% as some financial traders evidently decided to follow DNB’s lead.

As it turns out, DNB Asset Management ended 2022’s fourth quarter with over 2.1 million shares of Plug Power. That’s a huge position, even for a mega-sized fund like DNB.

And when I say “mega-sized,” I’m not exaggerating. Reportedly, Europe-based DNB Asset Management oversees around $87 billion in assets.

Granted, DNB Asset Management didn’t make a definitive statement as to why the fund held so many PLUG stock shares. Also, DNB might or might not hold as many Plug Power shares today as it did in Q3 of 2022.

Nevertheless, traders are in a buying mood, and Plug Power is catching a wave of buzz today. Indeed, Plug Power’s loyal investors might continue to see green in 2023 if more institutional whales like DNB Asset Management declare their stakes in the American clean-energy movement.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/why-is-plug-power-plug-stock-up-today-2/.

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