Stock Market Today, Dec. 31: Plug Power Rises After Clear Street Upgrades Rating Despite Lower Price Target

Plug Power (NASDAQ:PLUG), which develops hydrogen fuel cell and electrolyzer systems, closed Wednesday’s session at $1.97, up 1.55%. Plug Power IPO'd in 1999 but has fallen 99% since going public. Trading volume reached 80.1 million shares, coming in about 36% below its three-month average of 124.9 million shares.

Wednesday's moves followed a Clear Street rating upgrade to Buy with a reduced $3 price target. Investors are watching Plug Power's path to profitability and capital needs.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 0.74% to 6,846, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.76% to 23,242. Within hydrogen fuel cell systems, industry peers Bloom Energy (NYSE:BE) and Ballard Power Systems (NASDAQ:BLDP) were mixed, reflecting ongoing sector scrutiny of financing, demand visibility, and data center power opportunities.

What this means for investors

Clear Street trimmed its price target for Plug Power to $3 from $3.50, based on shareholder dilution related to the company's recent convertible refinancing. The updated price target still implies more than 50% upside, though, which explains why the investment firm upgraded the stock to a "buy" rating.

Yet a fresh round of financing last month adds to concerns of future shareholder dilution along with the company's existing debt load.

Investors are also eyeing an upcoming Jan. 6 conference appearance and late-January shareholder vote that could authorize additional shares and a potential reverse stock split. Those decisions could weigh on the stock in the near future.

Howard Smith has positions in Bloom Energy and has the following options: short January 2026 $60 calls on Bloom Energy. The Motley Fool recommends Bloom Energy. The Motley Fool has a disclosure policy.