What to Know Before Selling or Buying Sunpower Stock
SPWR stock news has recently gained attention due to its fluctuations. For investors interested in SPWR, we provide stock forecasts and an overview of the latest news.
SunPower Corporation, a provider of solar energy solutions in the US and Canada, offers modular systems for residential use and maintenance services. Founded in 1985 and headquartered in Richmond, California, it filed for Chapter 11 bankruptcy on August 5, 2024, as a subsidiary of TotalEnergies SE.
SunPower stock price previously closed at $0.0800 and opened at the same price today. Throughout the day, it remained steady, trading within the same range of $0.0800.
Over the past 52 weeks, SunPower’s stock has seen significant variation, with a low of $0.0800 and a high of $6.8010.
Today’s trading volume was 200 shares, which is lower than the average of 355 shares. Currently, market cap and beta information are unavailable. These figures highlight minimal trading activity and a history of substantial volatility for the stock.
SPWRQ/USD 5-Day Chart
SPWR Stock Forecast
The SPWR stock prediction shows analysts projecting an average price of $3.01 for SunPower over the next year, indicating a 20.40% upside potential for SPWR. Based on these projections, SPWR is currently classified as a Hold according to its technical indicators.
SPWR Stock Price Analysis
A 70% fall in SunPower’s shares has seen the company’s stock drop below a dollar after announcing that operational crippling was imminent and a halt of lease and electricity purchasing contracts.
As of January one, two thousand and twenty four, the company has lost eighty-five percent of its stocks value. SunPower’s announcement to cease offering for sale its long term agreements and installation works has made analysts project its liquidation owing to heavy debts.
The US residential solar market is grappling with rising interest rates, stricter regulations, and a 20% decline in installations in 2024. SunPower has struggled to manage the effects of these high interest rates. In December 2023, the company defaulted on credit repayments and faced additional challenges in maintaining its business operations.
By April 2024, SunPower disclosed its intention to close numerous installation services centers throughout the country and cut about 26% of its personnel.
Until late 2021, TotalEnergies was a 60% stakeholder in SunPower, but it has recently cut its shareholding to 32.5%. The French company has yet to issue any formal statements in relation to the developments.
Maxeon-SunPower officially announced the closure of its last solar panel factory in Europe located in Porcelette (Moselle) with a 3600m2 capacity in October 2022 citing that the facility was more than undersized.
What to Know Before Selling or Buying Sunpower Stock?
Should you buy Sunpower stock? Let’s first take a few moments to take a closer look at the Sunpower company. By having a good knowledge of this group and its activities, you will be able to analyse its challenges and its long-term growth opportunities on the stock market more easily.
The Sunpower Corp group is a company specialising in the energy sector on a global level. This company provides solar solutions to residential and commercial customers and power plants.
The Sunpower company is made up of several upstream and downstream segments with SunPower Energy Services downstream and Sunpower technologies upstream.
SunPower Energy Services handles the sale of solar energy solutions in North America. This includes direct sales of engineering, procurement, and turnkey construction services. It also manages sales to third-party resellers and sells energy through power purchase agreements. Additionally, it offers storage solutions, spot sales, long-term leases, and sales to resellers.
Sunpower Technologies is responsible for technology development, global solar panel manufacturing operations, equipment supply to resellers, commercial and residential end customers outside of North America and development and sales of power plant projects worldwide.
Currently, the Sunpower business employs 8,400 people worldwide.
SunPower Main Competitors
Let’s now take a look at Sunpower’s direct competitors, focusing on the three largest players in the global photovoltaic panel sector:
Jinko, a Chinese company, is one of the leaders in the photovoltaic sector globally, with two production sites in China. It operates worldwide through a network of sales and marketing offices.
Another serious competitor of Sunpower is the company Solarworld. This German company that has been in the photovoltaic panel sector since 2003. Solarworld operates throughout the entire photovoltaic panel manufacturing chain, from raw materials to installation, including the manufacture of wafers, cells, and panels. This group is also present worldwide.
SMA Solar Technology, another German company, is also worth following as part of your study of the competition in this sector. SMA Solar Technology is a manufacturer of inverters for photovoltaic installations designed to inject current into the grid. It also produces autonomous and backup systems. It is currently the world leader in this segment in terms of turnover.
SPWR Stock, Buy or Sell?
Investing in SunPower stock can be unfavorable owing to the recent problems that the company has gone through. The stock suffered a deep cut dropping below 1 dollar after operational shutdown announcements and severance of long-termed agreements.
Starting from January of the year 2024, the shares of SunPower lost almost 85% of elimination due to the increase of interest rates, regulatory compliance barriers, and the intense reduction of the US residential solar market.
Positive business news is some drawbacks setting around 20.40%. But it is prudent to remain this way as the company is still suffering with uncontrolled finance and possible cutbacks. Investment in the company should be done with careful consideration of the risk factors involved, especially since there has been no positive indication from SunPower on its business status.
The post SPWR Stock: Risks and Opportunities for Buyers and Sellers appeared first on FinanceBrokerage.