Plug Power (PLUG) Stock Surges 59% Over Past Week: What's Driving The Rally?

Plug Power Inc PLUG shares are continuing a remarkable rally Thursday, trading at $1.42 after skyrocketing over 59% in the past five days alone. The surge is backed by a series of positive company announcements that have bolstered investor confidence.

What To Know: The recent, primary catalyst is an expanded partnership with Allied Green Ammonia. Plug Power’s advanced electrolyzer technology will be central to a new $5.5 billion green chemical production facility in Uzbekistan.

This two-gigawatt project, which builds on an existing three-gigawatt collaboration in Australia, points to strengthening global demand for green hydrogen solutions.

Further boosting investor sentiment, Chief Financial Officer Paul Middleton purchased 650,000 shares on the open market, his second large buy in recent weeks. Middleton commented that he continues to see "meaningful upside" in the stock as the company executes its strategy within the energy sector.

Price Action: The recent price action, as noted by Benzinga Pro, is occurring amid significant short interest. With a short float of 19.79%, a substantial number of traders have bet against the stock. This week's rally could be intensified by a short squeeze, where short sellers buying back shares to cover losses adds fuel to the upward momentum.

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How To Buy PLUG Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Plug Power’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PLUG has a 52-week high of $3.34 and a 52-week low of $0.69.

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