Why Plug Power Shares Are Slumping Today
Portfolio Pulse from Nabaparna Bhattacharya
Plug Power, Inc. (NASDAQ:PLUG) shares dropped after announcing the exchange of existing notes for new convertible senior notes due in 2026 with a 7% annual interest rate. The exchange involves $138.8 million in principal of the old notes and leaves about $58.5 million of the existing notes unchanged. This follows a fiscal 2023 report of a 27.1% revenue growth to $891.234 million, missing consensus estimates, and a net loss per share of $(2.30). PLUG's cash and equivalents stood at $1.169 billion as of December 31, 2023. Shares fell by 4.52% to $3.38.
March 13, 2024 | 4:00 pm
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Plug Power announced the exchange of existing notes for new 2026 convertible senior notes with a 7% interest rate, following a fiscal 2023 revenue growth report that missed estimates.
The announcement of exchanging existing notes for new convertible senior notes with a higher interest rate indicates a restructuring of debt that may concern investors about the company's financial health. Additionally, the fiscal 2023 revenue growth, although positive, missed consensus estimates, and the reported net loss per share was higher than expected. These factors combined have likely contributed to the negative short-term impact on PLUG's stock price.
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