AI Infrastructure Stock Crosses Key Bullish Trendline

Penguin Solutions Inc (NASDAQ:PENG) stock is down 0.3% at $61.18 today, looking to close lower for the first time in three sessions, but remaining within a chip-shot of its August highs. The shares are up 212% year to date while a rebound in the stock's prior session has PENG crossing over the 80-day moving average.

Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event has happened three other times over the last 10 years. Penguin Solutions stock was higher one month later 67% of the time after these signals, averaging an 18.5% gain. From its current perch, a move of this magnitude would put the shares at $73 for the first time since July. 

It's worth noting PENG's short interest is elevated at the moment too. The 7.08 million shares sold short right now account for 14.3% of the stock's available float. It would take short sellers nearly three days to buy back their bearish bets, at the stock's average pace of daily trading.