Scott Levine, The Motley Fool

Thu, May 22, 2025, 5:32 AM5 min read

• Plug Power is a fuel cell manufacturer that also operates hydrogen production assets.

• Paul Middleton, Plug Power's CFO, reported a large acquisition of stock on the open market.

• Investors will likely suffer shareholder dilution in the future as the company is unprofitable and unable to generate cash organically.

• 10 stocks we like better than Plug Power ›

It's been a rough road for Plug Power (NASDAQ: PLUG) stock so far in 2025. Since the start of the year, shares have plummeted more than 62% as of this writing, so it's abundantly clear that the bears are more enthusiastic about the fuel cell and hydrogen stock's prospects than the bulls.

But one company insider thinks that the market has it wrong. In fact, he's so optimistic about the stock's prospects that he made a large buy on the open market recently to illustrate his faith. Is this the signal that investors have been waiting for to indicate that now's the time to power their portfolios with Plug?

In an effort to communicate his faith in Plug's financial strength, Paul Middleton, the company's chief financial officer, announced on Monday that he had acquired 350,000 shares of Plug stock in an open-market transaction valued at about $250,000 on May 16. Addressing the stock buy, Middleton stated:

I remain confident in Plug's long-term strategy and the opportunities ahead as we continue to execute our vision in the hydrogen economy. This purchase reflects my belief in the company's financial strength and growth potential.

The transaction followed shortly after Plug reported first-quarter 2025 financial results on May 12.

As a result of this acquisition, Middleton has grown his position in Plug stock to 1,908,064 shares, or 0.32% of the company's outstanding shares.

Middleton's transaction is the only open market buy of Plug stock by an insider in more than six years.

Investors usually interpret insiders' stock buys as auspicious signs that good things are on the horizon for the companies involved. However, most occurrences of insiders acquiring stock on the open market are not accompanied with a press release like it was with Middleton's recent purchase.

Sometimes silence speaks louder than words, and Middleton's insistence that the company is on sound financial footing is insufficient. Instead, his purchase seems like a weak attempt to instill confidence in investors after the company reported Q1 2025 financial results.