Shares of Plug Power (NASDAQ:PLUG) stock are up by about 35% during the past month. According to Citi, there are several factors behind the surge.
The first is a play on renewable energy companies resulting from an increased energy demand from artificial intelligence (AI). According to the International Energy Agency (IEA), the energy used in AI, data storage and cryptocurrency is forecasted to double by 2026.
The second factor is a short squeeze, which seems rational. As of May 15, PLUG stock had a high short interest as a percentage of float of 28.39%. That’s equivalent to 192.28 million shares sold short, which would take 5.4 days to fully cover.
Citi also notes that rising natural gas prices and an impending tariff rate hike on solar cells have benefited PLUG stock in recent weeks. However, the investment bank recommends that investors should avoid Plug Power. Citi has a $2 price target and “sell” rating for the green hydrogen company.
PLUG carries an average analyst price target of $5.66 among 32 analysts with coverage of the stock. That implies an upside of over 70% from current prices. H.C. Wainwright has the highest price target at $18, while Citi has the lowest.
5 Investors Betting Big on PLUG Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, these investors appear to be bearish on Plug Power.
During the first quarter, 442 13F filers disclosed a stake in PLUG, a decline of 29 filers compared to the prior quarter. The total number of shares owned by these filers also fell by 8.83% to 270.76 million.
Hedge funds, a subset of institutional investors, had a different stance. While the total number of hedge fund owners fell by 10 to 74, the total number of shares owned by hedge funds increased by 35.80% to 36.04 million.
With that in mind, let’s take a look at Plug Power’s top five shareholders:
- Vanguard: 54.98 million shares. Vanguard acquired 999,194 shares during Q1.
- BlackRock (NYSE:BLK): 48.20 million shares. BlackRock sold 3.09 million shares during Q1.
- State Street (NYES:STT): 22.42 million shares. State Street acquired 961,046 shares during Q1.
- Morgan Stanley (NYSE:MS): 17.74 million shares. Morgan Stanley sold 4.74 million shares during Q1.
- Geode Capital Management: 9.25 million shares. Geode acquired 379,694 shares during Q1.
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.
