Plug Power Inc. (PLUG) stock coverage initiated with “Buy” in note to investors by Rodman & Renshaw

Plug Power Inc. (NASDAQ: PLUG) shares rose on Tuesday Dec 6 with lighter trade volume than normal after more analysts initiated coverage on the stock.

Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.

The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%

Analysts at Rodman & Renshaw initiated coverage on Plug Power Inc. (NASDAQ: PLUG) stock, starting the company at Buy. With a rating of Buy on the shares, Plug Power Inc. has a 52-week high of $2.35. A number of other analysts have issued reports on the stock recently, and Plug Power Inc. has earned a consensus one-year price target of $2.23, above the opening price of $1.54, a difference of 14.39 percent. Analysts and brokerage firms will subsequently re periodic updates after initiating coverage,. Changes in price targets are not uncommon.

Shares of Plug Power Inc. (NASDAQ: PLUG) opened at $1.54 on Tuesday trading between $1.51 and $1.56, and last traded at $1.55, an increase of $0.08 or 5.44% from the previous closing price.

Plug Power Inc. (NASDAQ: PLUG) currently has a market cap of 279.70M.

Plug Power Inc. (NASDAQ: PLUG) Average Daily Trading Volume

The stock’s average daily volume is 2,497,400 shares out of a total float 178,720,000 and some 1,212,869 shares crossed the trading desk yesterday, below the norm. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to pinpoint substantial volume accumulation or dissemination by institutional investors.

However, just a day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Plug Power Inc. (NASDAQ: PLUG) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By following the activity of these professional investors and how they affect moving averages, traders can make smarter trades.

With that in mind, Plug Power Inc. (NASDAQ: PLUG) now has a 50-day MA of $1.47 and 200-day MA of $1.64. It has traded in a 52-week range between $1.18 – 2.35 and today’s last price is 34.04%% lower than the 52 week high of $2.35.

Earnings growth is an important factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.

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