Plug Power (PLUG) is still in the throes of a difficult year, but one institutional investor isn’t worried. Norges Bank, the Central Bank of Norway, has increased its stake in the clean energy company to almost 69.7 million shares. That amounts to an 8% stake, just as PLUG stock is quickly approaching an all-time low price point.
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At this point, Plug appears close to falling below $2 per share, displaying its worst performance since 2019. But Norges Bank seems to be employing the strategy of acquiring shares on the dip, clearly optimistic that a Plug Power rebound is imminent.
What’s Going On with Plug Power?
News of Norges’ new investment hasn’t helped PLUG stock rise today. The stock closed down 0.72% on the day amid high volatility. This comes after six months of turbulent trading, during which time Plug has fallen 27% despite some recent positive momentum.
According to a Securities and Exchange Commission (SEC) filing dated June 30, 2024, Norges previously held 25.6 million shares of PLUG stock. The fact that it has more than doubled its stake in just a few months suggests that the central bank foresees growth ahead for the struggling penny stock.
During the past six months, other companies in the space, such as Bloom Energy (BE), have significantly outperformed PLUG stock. But Norges’ action suggests that it sees PLUG stock as the best way to gain exposure to the booming market.
Is PLUG Stock a Buy, Sell, or Hold?
On Wall Street, the sentiment toward Plug Power remains mostly negative. Analysts have a Hold consensus rating on PLUG stock based on five Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After falling 75% over the past year, the average PLUG price target of $4.09 per share represents a 98.06% change from the last price of $2.07.
Plug has struggled recently, but its industry remains strong. A recent projection report from Fortune Business Insights states that the global fuel cell market is expected to expand “from USD 12.75 billion in 2024 to USD 105.01 billion by 2032,” growing at a CAGR of 30.15%.
Given PLUG stock’s considerable struggles, though, it still remains to be seen if the small-cap company can compete with its stronger peers that don’t trade at the penny stock level.
