Is Plug Power (NASDAQ:PLUG) setting up for a comeback? PLUG stock has shed about 24% so far in 2024, although there are hints of a recovery. It’s worth noting, however, that Plug Power is unprofitable. The company has generated an accumulated deficit of $4.5 billion since its inception.
First, the going concern warning that the green hydrogen company disclosed during the third quarter has since been resolved. In January, Plug announced a $1 billion at-the-market (ATM) offering, which provided the company with much-needed cash but also diluted shareholders in the process.
Last week, Senate Majority Leader Chuck Schumer announced that the U.S. Department of Energy (DOE) would provide Plug with $75.7 million in funding for two projects. Plug will use the funding to accelerate automation capabilities for membrane electrode assemblies (MEAs) production and for its proton exchange membrane (PEM) stack manufacturing facility in Rochester, New York.
The DOE is also in the process of finalizing a $1.6 billion loan with a maximum rate of 6.5% for the company, which should be announced by Q3.
The market and opportunity are certainly there. Plug just needs to figure out a way to increase its market share while also turning a profit.
The 5 Biggest Buyers of PLUG Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. Unfortunately, institutional investors were net sellers of PLUG stock during Q4. A total of 457 13F filers disclosed a stake in Plug during Q4, down from 498 filers during Q3. These filers own a total of 296.93 million shares, which fell by 1.85% from the prior quarter.
Hedge funds were even more bearish. 83 hedge funds reported a stake in PLUG compared to 89 funds previously. These hedge funds own 26.51 million shares, marking a steep decline of 24.16% from 34.96 million shares.
With that said, let’s take a look at Plug’s top buyers during Q4:
- State Street (NYSE:STT) bought 5.69 million shares, bringing its stake to 21.46 million shares.
- BlackRock (NYSE:BLK) bought 5.58 million shares, bringing its stake to 51.30 million shares.
- BNP Paribas (OTCMKTS:BNPQY) bought 3.30 million shares, bringing its stake to 4.43 million shares.
- HSBC (NYSE:HSBC) bought 1.94 million share, bringing its stake to 2.46 million shares.
- Two Sigma bought 1.80 million shares and owned zero shares prior to Q4.
On the date of publication, Eddie Pan did not hold (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.
