PLUG - Plug Power Shares Sell Off on Stock Offering. Should You Buy on the Dip?
2024-07-21 06:20:00 ET
Shares of Plug Power (NASDAQ: PLUG) were sinking after the hydrogen fuel cell producer announced a secondary stock offering to help it raise cash. The downward move in the stock only added to its recent woes, with its price now plunging over 75% in the past year.
Let's look at the energy company's secondary offering and why the timing of this announcement likely is not good for the stock.
Plug Power announced last week that it would sell $200 million worth of shares in a public offering -- selling 78,740,157 shares at a price of $2.54 per share. That was an over 13% discount to its closing price of $2.93 before the announced offering. The offering (to be completed by Monday, July 22) increased its shares outstanding by about 10.6%.
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Plug Power Shares Sell Off on Stock Offering. Should You Buy on the Dip?