Plug Energy GenDrive Gasoline Cell with GenFuel hydrogen.
Supply: Plug Energy
Shares of Plug Energy dropped greater than 16% on Wednesday after the corporate stated it is going to restate monetary outcomes following accounting errors.
In a submitting with the Securities and Alternate Fee on Tuesday night, the gas cell maker stated it is going to restate monetary statements for fiscal years 2018 and 2019, in addition to quarterly filings for 2019 and 2020.
The corporate stated the accounting errors are primarily associated to areas together with the impairment of sure long-lived property, in addition to loss accruals for sure service contracts.
“There is no such thing as a anticipated impression to our money place, enterprise operations or economics of business preparations,” Plug Energy stated within the submitting, including that the evaluation didn’t discover any misconduct.
The corporate stated no points had been raised forward of its fourth quarter 2020 and year-end preliminary outcomes, which had been introduced on Feb. 25. The submitting added that the up to date outcomes might be made public as quickly as potential, however didn’t give a particular date.
The Latham, New York-based firm has been a well-liked identify amongst retail buyers, and has been the topic of debate on Reddit’s WallStreetBets discussion board.
Shares of the corporate, which went public in 1999, soared greater than 970% in 2020. The power continued into 2021, and the inventory hit an intraday excessive of $75.49 on Jan. 26 — its highest stage in a minimum of a decade.
Hydrogen gas cell maker Plug Energy’s inventory during the last decade
Amid the inventory’s power, CEO Andy Marsh bought greater than $37 million price of his place, in keeping with a submitting with the SEC dated Jan. 21. The submitting acknowledged that the earliest sale was on Jan. 19, with Marsh’s promoting value starting from $62.25 to $68.43. The submitting notes that the transactions had been pursuant to a pre-established 10b5-1 buying and selling plan, which permits insiders to promote inventory.
Even with the inventory’s current soar, shares are nonetheless 97% beneath their $1,565 per share all-time excessive from the peak of the dotcom bubble in 2000.
Wednesday’s sharp decline elicited a blended response from Wall Road analysts.
Truist reduce the inventory to a maintain score, citing a scarcity of near-term alternative. “We see restricted upside till decision, notably amidst a broader rerate in various energy-oriented equities,” analysts led by Tristan Richardson wrote in a observe to shoppers. The agency additionally slashed its goal from $65 to $42, which is round the place the inventory closed on Tuesday.
On the flip facet Canaccord Genuity, B. Riley and Roth Capital Companions, all of which have a purchase score on the inventory, stated the pullback in shares creates a lovely entry level for buyers.
“We see Plug’s accounting restatement as creating a significant shopping for alternative. … Development buyers could have a possibility right this moment to purchase shares in PLUG, the place we see plentiful catalysts for 2021 that we count on to quickly restore valuation,” famous Craig Irwin from Roth Capital.
He pointed to Plug Energy’s initiatives round gas cell vans in addition to small stationary gas cells as among the many upside catalysts.
The typical Road score on the inventory is chubby, whereas the typical value goal is $63, in keeping with estimates compiled by FactSet.
The inventory closed at $42.68 on Tuesday, and shares are up 26% for the 12 months by Tuesday’s shut.
– CNBC’s Michael Bloom contributed reporting.