ITM Power Insider Sells After Stock's Meteoric April Rally

Simon Bourne sells 872,738 shares at 157p after options exercise, as ITM Power nears £1B market cap amid Morgan Stanley's bullish call and government funding.

A top executive at ITM Power has cashed in on the company's stunning share price surge, selling nearly 873,000 shares just as the hydrogen specialist's market capitalisation flirts with the £1 billion mark. The transaction, executed on the last trading day before the May Day bank holiday, comes amid a whirlwind month that has seen the stock more than double.

Chief Technology Officer Simon Bourne exercised options on 1.33 million shares on 30 April, acquired under the company's 2010 share option plan at a weighted average price of just 32 pence each. He then offloaded 872,738 of those shares at an average of 157.44 pence apiece. ITM Power described the move as a "sell-to-cover" transaction, meaning the proceeds were used to settle the tax liability arising from the option exercise. Following the sale, Bourne retains 656,570 shares, representing roughly 0.095% of the company's issued capital.

The timing is notable. ITM Power's stock closed at 146 pence on 30 April, a single-day gain of 12.65%, after trading in a range between 139 and 151.30 pence. The relative strength index has climbed to 91.77 — a level that historically signals an overbought condition and often precedes a period of consolidation. The shares now trade well above both their 50-day moving average of 79.54 pence and their 200-day moving average of 73.18 pence, underscoring the ferocity of April's rally.

Morgan Stanley's Bullish Call Fuels the Fire

The latest leg higher was triggered by a significant upgrade from Morgan Stanley. The investment bank lifted its rating on ITM Power from "equal-weight" to "overweight" and more than doubled its price target to 170 pence from 60 pence. The catalyst, according to analysts, is an improved operational outlook. Morgan Stanley now expects the Sheffield-based company to reach EBITDA break-even in fiscal 2028 — a full year ahead of the market consensus.

That optimism is grounded in tangible progress. ITM Power recently reported annual revenue of £26 million, an increase of more than 50% year-on-year. Management has guided for revenue of up to £43 million in the current period. Chief Executive Dennis Schulz declared the company's strategic restructuring complete, with the focus now on streamlining production of its PEM electrolysers to make them scalable and competitive for large-scale contract awards.

State Backing and a Pending Regulatory Hurdle

Adding to the momentum, ITM Power secured an £86.5 million government funding package in early April. The money is earmarked for a new automated production line for the company's next-generation "Chronos" electrolysers. However, the funds remain subject to state aid approval, with the regulatory review expected to conclude by June 2026. A positive outcome would provide the capital needed to build out the targeted one-gigawatt production capacity.

Analyst Divergence and Technical Resistance

Not everyone is convinced the rally is sustainable. Berenberg has a "buy" rating on the stock but with a price target of just 110 pence, well below current levels. UBS remains at "neutral" with a 60 pence target, suggesting the shares have run far ahead of fundamentals. The key question for both houses is how quickly ITM Power can narrow its EBITDA losses as it scales up PEM electrolyser production.

When trading resumes on Tuesday, the stock faces immediate resistance at 151.30 pence, the intraday high from 30 April. A broader resistance zone lies between 157 and 159 pence — precisely the range where Bourne executed his share sale. Whether that proves to be a ceiling or a launching pad for further gains will depend on how the market interprets the insider transaction and whether the broader hydrogen rally has further to run.