Plug Power Inc (NASDAQ:PLUG) tripped a circuit breaker on short selling today, thus restricting prices at which the fuel cell company’ s stock can be sold short. FactSet data indicates that approximately 30% of Plug Power’s shares are sold short.
Shares of Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), a supplier to Plug Power Inc (NASDAQ:PLUG) declined by more than 4% in morning trading as well.
Plug Power hit by competitor’s bankruptcy
Shares of Plug Power Inc (NASDAQ:PLUG) have been getting killed since the second half of April. The company has been hit by bad news frequently. A report from an analyst that suggested fuel cells have no place in the future of the automobile also sent shares lower.
On Friday, competitor ClearEdge filed for bankruptcy, adding fuel to the fire. It was a surprise, and with every bit of bad news about the fuel cell industry, investors have become increasingly concerned that it isn’t strong.
Plug Power Inc (NASDAQ:PLUG) shares have also recorded big moves nearly every time CEO Andy Marsh says anything. The stock shot up when he mentioned something about a big order but then dived when he backtracked and said his comments were about an already reported order. The company makes hydrogen fuel cell systems for forklifts inside major companies’ warehouses. Marsh has said that he is convinced his company is moving into a rapid growth cycle.
Plug Power raises $116 million
Plug Power Inc (NASDAQ:PLUG) was also hurt by share dilution in the wake of its most recent stock offering. The fuel cell supplier said it made $116 million in that sale last week, selling 22.6 million shares for $5.50 each, including discounts, fees, commissions and other expenses.
The company is scheduled to release the results from its first quarter on May 14. On average, analysts are expecting Plug Power Inc (NASDAQ:PLUG ) to report adjusted losses of 5 cents per share on $5.35 million in revenue.