FuelCell, a clean energy company FuelCell, has expanded its partnership with Exxon Mobil The stock traded at $7.97 last month. Many also believe that the recent U.S. infrastructure bill will be a boon for the company. However, the stock is currently trading significantly below its 52-week high of $29.44, closing yesterday’s trading session at $7.97. So, let’s evaluate if it is wise to buy the dip in the stock now. Keep reading.
FuelCell Energy, Inc., an integrated fuel cell company, in Danbury, Conn., signed a six month extension on November 2, with Exxon Mobil Corporation, (NYSE:), to allow for continued collaboration on carbonate-fuel cell technology. Over the past three months, the stock soared 25.1% in price to close yesterday’s trading session at $7.97. This is partly due to investors’ optimism surrounding the passage of the bi-partisan infrastructure bill, which includes $9.50 billion to accelerate the development of clean hydrogen technology. Retail investor interest also drove the stock’s price to record heights in October.

It is not clear, however, if funding from the Infrastructure Bill-related to FCEL will actually benefit FCEL. Over the past month, stock prices fell 16.4% and have dropped 28.7% over the year.

The company also entered into an open market sales agreement with June 2021. This allows it to offer or sell shares from time-to-time. It could cause share dilution. FCEL also reported quarterly losses. So, the stock’s near-term prospects look bleak.

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