Plug Power Inc Short Interest Declines By 4.7 Percent

Plug Power Inc Short Interest Declines By 4.7 Percent

It would take short sellers 7.3 days to cover their short positions

Plug Power shares have fallen more than 44% in the past three months. The stock witnessed a large decline in short interest last month. According to data from Nasdaq, short interest in Plug Power stock plunged 4.7% from 33.018 million shares on December 31 to 31.45 million on January 15. The average daily trading volume has also come down from 5 million to 4.32 million shares in the same period.

18.8% of Plug Power’s float is sold short

Based on the daily trading volume of 4.32 million shares, it would take short sellers 7.3 days to cover their bearish positions. Currently, 18.8% of Plug Power’s total outstanding shares are held short. Last week, the Latham, New York-based company dramatically slashed its FY2015 revenue forecast. Plug Power CEO Andy Marsh said that the company’s revised guidance was something “people could rely on.”

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Plug Power has historically over-promised and under-delivered in terms of sales again and again. Andy Marsh had previously said that the company would reach $130 million in revenue this year. But he reduced the guidance to a little over $100 million at a conference call on January 28. Marsh forecasts $200 million in bookings this year.

Plug Power expects GenDrive margins to improve to 29%

The company’s new guidance was much lower than the Wall Street consensus of $123.7 million. Plug Power’s sales have increased consistently over the past few months. Analysts believe approximately 50% of the company’s revenue this year will come from GenDrive. Andy Marsh said at the conference call last week that he expected the GenDrive margins to increase from 12% in Q3, 2014 to 29% by Q4, 2015.

Plug Power is yet to release its fiscal fourth-quarter 2014 results. Analysts expect the company to report 4 cents a share in losses on revenue of $26.67 million in December quarter. The company had suffered a loss of 8 cents on $8.03 million in revenue in the corresponding period a year ago. Recently, Plug Power signed a $20 million contract with SouthernLINC Wireless, which is expected to boost its 2015 revenue.

Plug Power shares jumped 3.60% to $2.88 at 10:4 AM EST on Tuesday.

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