Plug Power Stock Continues To Surge: What's Going On?

Plug Power Inc PLUG shares are rising Tuesday on what appears to be continued momentum following a more than 25% surge to start the week. Here’s a look at what’s going on.

What To Know: Plug Power on Monday saw its shares move higher after the company announced an expanded partnership with Allied Green Ammonia in which the company’s electrolyzer technology will be used as the foundation of a new $5.5 billion green chemical production facility in Uzbekistan.

The new two gigawatt project in Uzbekistan builds on Allied Green’s previously announced three gigawatt electrolyzer commitment for its flagship green ammonia facility in Australia.

Shares accelerated to the upside in afternoon trading Monday after Plug announced that CFO Paul Middleton purchased an additional 650,000 shares of the company’s common stock for around $1.03 per share. Middleton said he sees “meaningful upside” in shares as Plug plays a key role in the energy transition.

The share purchase comes after Middleton disclosed buying 350,000 Plug shares in May for roughly 72 cents per share on the heels of the company’s first-quarter financial results.

Plug reported a first-quarter loss of 21 cents per share last month on revenue of $133.67 million as GenEco electrolyzer sales increased 575% on a year-over-year basis. The company guided for second-quarter revenue in the range of $140 million to $180 million versus estimates of $132.16 million, according to Benzinga Pro.

Following the company’s quarterly results, multiple analysts adjusted price targets ranging from 50 cents to $1 per share.

PLUG Price Action: Plug Power shares closed Monday up 25.9% at $1.22. The stock was up 12.3% Tuesday morning, trading at $1.37 at the time of publication, according to Benzinga Pro.

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Photo: courtesy of Plug Power.