Dallas, Texas 05/06/2014 (FINANCIALSTRENDS) – Plug Power Inc (NASDAQ:PLUG)’s stock yesterday tumbled and lost around 9.78% or $0.44 from its previous close to end the session at $4.06. The stock traded with volume of 27.53 million shares against its 30 day average volume of 35.67 million shares. At its Monday’s close, the stock is trading 65.36% below its 52 week high, 36.01% below its 50 day simple moving average and 56.48% above its 200 day simple moving average.
The company is scheduled to release its 1Q14 earnings during next week on May 14, 2014.
Why Plug Power Tumbled?
Equities Research Analysts at TheStreet accounts weak operating cash flow and deteriorating net income as notable weaknesses in Plug Power Inc (NASDAQ:PLUG). Moreover Plug Power’s growth rate is also much lower when compared with an industry average. TheStreet maintains “sell” rating for the stock. The company reported about 93.52% or ($8.94) million declined in its quarterly net operating cash flow on a year over year basis.
The net income also has considerably decreased to ($28.88) million or 240.8% when compared with the net income of ($8.47) million in the same last year quarter. So even on the basis of net income, the company has considerably underperformed to that of the S&P 500 as well as the Electrical Equipment industry. Plug Power Inc (NASDAQ:PLUG)’s earnings per share correspondently declined by 27.3% in the most recent quarter, on a year over year basis. Moreover, the company has reported volatile earnings in its recent quarters.
No Potential Upside:
Moreover the company has delivered more than 2500% returns in last 12 month period which has far exceeded the broader market performance. However, the analysts at TheStreet believe “the risks involved in investing in PLUG do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.”