When an issue has an extraordinary move in either direction on an earnings report, the price action just before the report and the day of the print are interesting to follow. With that being said, Plug Power Inc (NASDAQ:PLUG) is the PreMarket Prep Stock of the Day.
About Plug Power: Plug Power is an innovator of modern hydrogen and fuel cell technology. It aims to revolutionize the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable and cost-effective way.
The company's GenKey solution couples together the necessary elements to power, fuel and serve a customer. With proven hydrogen and fuel cell products, the company replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in distribution centers.
Its ProGen platform of modular fuel cell engines empowers OEMs and system integrators to adopt hydrogen fuel cell technology.
High Voltage Rally: After ending 2019 at $3.16, Plug Power traded high in 11 of the next 13 months ending in January 2021.
It finally peaked in January at $75.49 and backed off to end the month at $63.17. On a closing basis over that time period, it had a 1,900% return.
Losing Charge: The issue reached its highest level since May 2004, when it peaked on Jan. 26 at $75.49 before ending the session at $73.18.
The following day, the stock shed nearly $9, falling to $64.42 and making it back over $70 on only one occasion.
What ended the rally was a well-timed and upside offering of 28 million shares at $65/share.
Profit-Taking Ahead Of Plug Power's Report: Plug Power was able to remain in the $60 handle until Feb. 16, when it swooned form $63.19 to $59.
It was unable to rebound and cratered to $37.22 on Tuesday when the broad market collapsed. It was able finish the session well off that low at $46.46 and added nearly $4 on Wednesday, ending the session at $50.16.
Plug Power's Q4 Report, Price Action: Before the open Thursday, the company reported a fourth-quarter earnings loss of $1.12 per share, much worse than a 6-cent loss one year ago.
Plug Power reaffirmed 2021 gross billings guidance of $475 million.
On the upside, Plug Power was unable to reach Wednesday's close ($50.16), only reaching $48.75.
The stock ended Thursday's session down 13.6% at $43.34.
A Plug Power hydrogen production facility. Courtesy photo.
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