The stock has had a wild 2024, surging 87.73% from January before giving back nearly half its value from a May peak. The latest developments present a study in contrast: a former Rolls-Royce chief has just added to his stake, while a crucial government grant that could underwrite the company’s next growth phase remains stuck in regulatory review.
Warren East, the non-executive director best known for steering ARM Holdings, bought 172,000 shares on 4 July. The London Stock Exchange registered the director-dealing notification on 8 July, confirming the insider’s vote of confidence at a time when the stock has been sliding. Market watchers often interpret repeat insider purchases as a signal that management sees long-term value—especially relevant as ITM Power attempts to transition from a research-oriented player to a full-scale manufacturer.
The backdrop to East’s purchase is a £46.5m grant from the UK’s Department for Energy Security and Net Zero, part of a larger £86.5m funding package that also includes a £40m equity injection from state-owned Great British Energy. The grant is intended to build a new automated production line for ITM’s “Chronos” electrolyser in Sheffield. The facility, adjacent to the existing Trident line, is designed to reach an annual capacity of one gigawatt, relying on automated machinery for electrode coating and welding. Management says the setup minimises both financial and technical risks during the ramp-up.
While the government has awarded the grant, it still requires clearance from the Subsidy Advice Unit of the Competition and Markets Authority. That regulatory sign-off is critical for final investment approval on the Chronos line. Until the CMA rules, the full funding package remains in limbo.
Should investors sell immediately? Or is it worth buying ITM Power?
Operationally, ITM Power is making progress. In the first half of its financial year, it reported a record £18m in revenue and an order book of £152m, with management emphasising a rising proportion of profitable contracts. The company is also pursuing the “Giga PtX” project with Rheinmetall to produce synthetic fuels for defence and industrial applications—a partnership that analysts at Berenberg highlighted when they lifted their price target on the stock to 200 pence, equivalent to roughly €2.35.
The share price tells a story of cooling momentum. After hitting a 52-week high of €2.58 on 29 May, the stock closed at €1.36 on Wednesday—a decline of 47.17% from that peak. It now trades 21.47% below its 50-day moving average of €1.73, though it remains comfortably above the 200-day line of €1.07. The relative strength index stands at 42.1, a neutral reading that signals neither overbought nor oversold conditions. The annualised 30-day volatility of 107.31% underscores the risk inherent in the hydrogen technology sector.
For now, the stock is caught between operational milestones and regulatory uncertainty. Warren East’s insider purchase adds a layer of management conviction, but the market is waiting for the CMA’s decision on the £46.5m grant before pricing in the full potential of the Chronos line. That ruling could determine whether the stock’s recent correction turns into a launching pad or a longer pause.
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