Massive Contract Boosts PLUG Stock

Analysts are extremely bullish on PLUG

Lillian Currens

Digital Content Manager

Jan 6, 2020 at 9:59 AM

PLUG

The shares of Plug Power Inc (NASDAQ:PLUG) are soaring today, after the company won a contract from an unnamed Fortune 100 client for hydrogen fuel cell deployments at the "close of 2019." The contract is valued at more than $172 million. The stock is up 10.2% at $3.56 in response.

Looking back, Plug Power stock hit a five-year peak just north of the $4 level back in late-November. While the shares sold off sharply following this high, their 100-day moving average helped capture the pullback. Now, PLUG is eyeing its first close back atop recent pressure at its 30-day moving average.

Analysts have been optimistic over PLUG, despite the recent pullback. Five of the six in coverage call it a "strong buy." Plus, the consensus 12-month price target of $4.16 is a 28.8% premium to last night's close, and represents a level the equity hasn't touched since 2014.

On the other hand, short sellers have a tight grip on the security, despite short interest falling 8.6% in the last two reporting periods. The 46.65 million shares sold short represent a solid 20.3% of PLUG's available float, and would take over a week to cover, at the stock's average pace of trading.

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