Stock Story -
What Happened:Shares of renewable energy company Plug Power (NASDAQ:PLUG) fell 16.6% in the pre-market session after the company announced that it had commenced an underwritten public offering of $200,000,000 of its common stock.
Notably, before the announcement, PLUG had more than 742m shares outstanding, which means the stock sale could raise the supply by roughly 10%. This could have a negative impact on its stock price as the increase in the supply of outstanding shares dilutes the ownership of existing shareholders.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Plug Power? Find out by reading the original article on StockStory, it's free.
What is the market telling us:Plug Power's shares are very volatile and over the last year have had 80 moves greater than 5%. But moves this big are very rare even for Plug Power and that is indicating to us that this news had a significant impact on the market's perception of the business.
Plug Power is down 46.2% since the beginning of the year, and at $2.47 per share it is trading 81.3% below its 52-week high of $13.17 from July 2023. Investors who bought $1,000 worth of Plug Power's shares 5 years ago would now be looking at an investment worth $1,069.
