TLDR
- Plug Power (PLUG) stock jumped 20% in premarket Monday after gaining 35% on Friday
- H.C. Wainwright raised price target from $3 to $7, pointing to rising electricity prices and nuclear power market demand
- Short interest stands at 30.30%, near all-time highs, with analysts noting potential short-squeeze
- Stock is up 79% year-to-date after erasing earlier losses with recent rally since mid-September
- Wall Street remains cautious with average analyst price target of $2.42, implying 37% downside from Friday’s close
Plug Power stock continued its rally Monday morning with a 20% gain in premarket trading. This follows Friday’s 35% surge that caught the attention of traders across Wall Street.
The hydrogen fuel cell company has seen dramatic price action over the past two trading sessions. H.C. Wainwright sparked the rally by raising its price target to $7 from $3 on Friday.
The firm’s analysts pointed to rising electricity prices as a key factor behind their bullish stance. They also mentioned growing regulatory support and market demand for nuclear power over the past six months.
Friday’s trading session saw volume spike to four times the average. This heavy volume suggests strong conviction behind the price move rather than a temporary blip.
Short Interest Creates Squeeze Potential
H.C. Wainwright analysts also flagged the possibility of a short squeeze. Plug Power’s short interest currently sits at 30.30% according to Koyfin data.
That level is close to the all-time high of 31.4% reached in March. When shorts rush to cover their positions, it can fuel rapid price increases.
The company has made operational progress recently. Production at its Georgia hydrogen facility reached record levels according to recent company reports.
Plug Power also amended its at-the-market equity sales agreement. The new arrangement allows the company to issue up to $1 billion in common stock.
The recent rally has completely reversed the stock’s earlier losses. Plug Power now shows a 79% gain for the year after being in negative territory mid-September.
Technical Indicators Flash Warning Signs
The rapid rise has pushed the stock into overbought territory. The 14-day relative strength index shows a reading of 83.
Readings above 70 typically indicate a stock has risen too far too fast. This suggests a potential pullback could be on the horizon.
Wall Street analysts remain cautious despite the recent price action. The average price target across all analysts stands at $2.42 according to Koyfin.
That target implies a 37% drop from Friday’s closing price. The disconnect between analyst expectations and current price creates an interesting dynamic.
Plug Power closed Friday’s session after the massive rally. Monday’s premarket action shows buyers remain in control for now.
The stock’s year-to-date performance of 79% marks a dramatic turnaround. Just weeks ago, the shares were showing losses for 2025.
H.C. Wainwright’s upgraded price target represents more than a 100% increase from their previous forecast. The firm’s analysts see electricity pricing trends as a tailwind for the hydrogen fuel cell business.
The recent production records at the Georgia facility provide some fundamental support for the price action. The $1 billion stock issuance agreement gives the company additional financial flexibility.
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