NEW YORK (TheStreet) -- Ballard Power Systems (BLDP - Get Report) dropped 5.04% to $5.09, down 27 cents from its previous close of $5.36, at the close of the trading day on Thursday in sympathy with peer company Plug Power (PLUG), which priced a registered offering of 3,902,440 shares of common stock at $5.74 a share.
Plug Power anticipates gross proceeds of approximately $22.4 million from the public offering and net proceeds of approximately $21.5 million. The company intends to use the net proceeds from the sale for working capital and other general corporate purchases such as capital expenditures.
Ballard Power Systems amassed a volume of 12,976,293, nearly triple its average volume of 4,789,580. It hit a high of $5.35 and a low of $4.94 for the day. The stock had risen along with Plug Power's surge throughout the week after the latter company's announced deal with Wal-Mart (WMT).
TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly decreased to -$0.87 million or 63.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, BALLARD POWER SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 46.06% is the gross profit margin for BALLARD POWER SYSTEMS INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.13% is in-line with the industry average.
- This stock has increased by 418.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BLDP do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- BALLARD POWER SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, BALLARD POWER SYSTEMS INC continued to lose money by earning -$0.21 versus -$0.47 in the prior year.
- You can view the full analysis from the report here: BLDP Ratings Report