The deadline for institutional investors to file their quarterly 13F is officially over, meaning that the public now has the opportunity to view the positions of top investors as of Dec. 31.
Saudi Arabia’s Public Investment Fund (PIF) is a popular investor to track, as its 13F portfolio includes 50 positions spread across $35.24 billion. Unfortunately for shareholders of Plug Power (NASDAQ:PLUG) stock, PIF sold off its entire stake of 5.67 million shares during the fourth quarter.
PIF first bought shares of PLUG stock during Q3 2021, adding 9.82 million shares. By Q1 2022, its position had fallen to 5.67 million shares. The fund has an average holding period of 8.44 quarters, or 2.11 years.
PLUG Stock: PIF Sells Its Entire Stake
So, why exactly did PIF sell out of Plug? 13F filers aren’t required to disclose the reasons behind their buys and sales, so its up to the public to decipher these transactions.
For starters, 2023 was an extremely rough year for the green hydrogen company. During Q3, Plug issued a going concern warning, stating that its “existing cash and available for sale and equity securities will not be sufficient to fund its operations through the next twelve months.” It provided several options to raise capital, such as taking on debt or receiving a loan from the U.S. Department of Energy (DOE). In January, the company announced that it was in the process of closing a $1.6 billion DOE loan with a max rate of 6.5%. Chief Financial Officer Paul Middleton added that he expects the loan to be finalized by Q3.
Furthermore, Plug is burning through a significant amount of cash while still unprofitable. During Q3, revenue tallied in at $199 million, up by 5.34% year-over-year (YOY). However, the company also reported a net loss of $270 million compared to a loss of $171 million a year ago.
Meanwhile, PIF also owns NEOM, which is an ambitious plan to create a futuristic city in Saudi Arabia. NEOM just so happens to own the NEOM Green Hydrogen Company through a joint venture with ACWA Power and Air Products (NYSE:APD). As a result, PIF already has exposure to green hydrogen.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
