What Caused Flux Power Stock (FLUX) to Drop 26% Today?
Public Offering Announcement: Flux Power (FLUX) announced a public offering of 3.84 million shares at $2.50 each, with an option for underwriters to purchase an additional 576,000 shares, expecting gross proceeds of $9.6 million.
Stock Price Impact: Following the announcement, FLUX stock dropped 26.5% in pre-market trading, continuing a downward trend after a 13.27% decline the previous day, despite a year-to-date increase of 131.65%.
Market Compliance: The public offering comes shortly after Flux Power regained compliance with Nasdaq listing requirements, achieving a market value of at least $35 million on October 20.
Analyst Ratings: Analysts maintain a Moderate Buy rating for FLUX, with an average price target of $7, indicating a potential upside of 91.26% for investors.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on FLUX
About FLUX
About the author
Flux Power Holdings, Inc. Class Action Settlement Proposal Approved for $1.75 Million
- Settlement Amount: The U.S. District Court for the Southern District of California has approved a proposed class action settlement for Flux Power Holdings, Inc. involving $1.75 million, aimed at compensating investors who purchased stock between November 15, 2021, and February 14, 2025, reflecting the court's commitment to investor rights.
- Hearing Schedule: A hearing is set for April 2, 2026, to evaluate the fairness and adequacy of the settlement proposal, which, if approved, will provide compensation to affected shareholders, thereby enhancing investor confidence in the market.
- Claim Submission: Affected shareholders must submit a claim by March 3, 2026, to share in the distribution of the Net Settlement Fund, emphasizing the importance of timely action, which may influence investor participation and the smooth execution of the settlement.
- Exclusion Requests: Investors wishing to opt-out of the settlement class must submit a request by March 12, 2026; those who do not will be bound by the settlement judgment, reminding investors to be vigilant about protecting their rights.
Plug Power Continues to Struggle with Margin Issues: Is a Turnaround Possible?
Plug Power's Financial Struggles: Plug Power Inc. continues to face significant margin challenges, with its gross margin worsening from negative 57.6% to negative 67.9% year-over-year, resulting in a gross loss of $120 million in Q3 2025.
Impairment Charges and Asset Write-Downs: The company incurred over $97 million in impairment charges due to project execution issues and customer disputes, leading to reductions in the value of various assets.
Long-Term Recovery Plans: Despite ongoing difficulties, Plug Power is focused on long-term recovery by reducing input costs, tightening spending, and expanding its electrolyzer capacity and hydrogen plant development.
Comparative Industry Performance: While Plug Power's shares have only gained 1.4% year-to-date, peers like Bloom Energy have seen significant gross profit increases, highlighting the competitive challenges Plug Power faces in the industry.
