Plug Power Inc (NASDAQ:PLUG) shares are trading higher Wednesday morning as investors continue to digest a series of strategic wins that strengthen the hydrogen fuel cell maker's operational and financial outlook. Momentum is building following the company's announcement of its first-ever contract with NASA.
- PLUG stock is moving in positive territory. Get the details here.
What To Know: Under the $2.8 million award, Plug will supply liquid hydrogen to key NASA research facilities, including the Glenn Research Center. While the contract value is modest, the deal signals a strategic expansion into the high-specification aerospace sector.
Investors have also been watching the stock closely following a significant balance sheet restructuring. Plug recently closed a $431.25 million convertible note offering due 2033. Management used the net proceeds to retire costly 15% debt and eliminate restrictive liens.
This move creates an eight-year balloon structure with no required amortization, expected to save approximately $20 million annually in interest expenses. CEO Andy Marsh called this financing a “major turning point” that fully funds the company’s current operating plan.
Looking ahead, the company reiterated guidance targeting positive EBITDA by late 2026. However, challenges remain; investors are closely watching an upcoming Jan. 15 shareholder vote to increase authorized shares to 3 billion. JP Morgan recently maintained a Neutral rating, citing potential dilution risks, while acknowledging the progress in de-leveraging.
Benzinga Edge Rankings: Reflecting the stock’s recent surge in activity, Benzinga Edge rankings currently assign Plug Power a high Momentum score of 91.13.
PLUG Price Action: Plug Power shares were up 1.90% at $2.15 at the time of publication on Wednesday, according to Benzinga Pro data.
Currently, Plug Power is trading approximately 21.5% below its 50-day moving average, suggesting that the stock has been underperforming relative to its recent price trends. In contrast, it is trading approximately 26.5% above its 200-day moving average, indicating a longer-term bullish trend despite the recent price action.
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How To Buy PLUG Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Plug Power’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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