Reassessing The Changing Outlook For SunPower Corporation (SPWR)


Wellington Management Co. LLP recently announced the acquisition of new stake in SunPower Corporation (NASDAQ:SPWR). The institutional investor has increased its shareholding in the Technology company by 0.56% to 13.14 million shares with purchase of 73688.0 shares. This fresh investment now brings its stake to 7.73% valued currently at $122.61 million. In addition, BlackRock Fund Advisors raised its holdings by 0.51 million to 6.38 million shares. And Invesco Capital Management LLC has lifted its position by 8.13% or 0.34 million shares – to 4.51 million shares.

With over 3.34 million SunPower Corporation (SPWR) shares trading Monday and a closing price of $12.15 on the day, the dollar volume was approximately $40.64 million. The shares have shown a positive weekly performance of 5.84% and its price on 08/24/20 gained nearly 3.85%. Currently, there are 170.00M common shares owned by the public and among those 80.57M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for SPWR have a consensus price objective of $9.14. The analysts have set the share’s price value over the next 12 months at a high of $13.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the SunPower Corporation stock is 3.20 for the next 12 months. The average price target is -41.11% below its last price level and a downside to the estimated low will see the stock lose -143.0% over that period. But an upside of 6.54% will see the stock hit the forecast high price target while mean target price for the stock is $10.00.

Insiders at the company have transacted a total of 163 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 99 of these insider trades were purchases, accounting for 9,740,318 shares. Insider sales of the common stock occurred on 64 occasions, with total insider shares sold totaling 3,262,677 shares.

The top 3 mutual fund holders in SunPower Corporation are Vanguard Explorer Fund, Invesco Solar ETF, and Federated Hermes Kaufmann Small C. Vanguard Explorer Fund owns 5.09 million shares of the company’s stock, all valued at over $47.45 million. The company bought an additional 0.45 million shares recently to bring their total holdings to about 2.99% of the shares outstanding. Invesco Solar ETF bought 28620.0 shares to see its total holdings expand to 3.77 million shares valued at over $35.2 million and representing 2.22% of the shares outstanding. Federated Hermes Kaufmann Small C bought 0.65 million shares to bring its total holdings to over 3.12 million shares at a value of $29.11 million. Federated Hermes Kaufmann Small C now owns shares totaling to 1.84% of the shares outstanding.

Shares of SunPower Corporation (NASDAQ: SPWR) opened at $11.89, up $0.19 from a prior closing price of $11.70. However, the script later closed the day at $12.15, up 3.85%. The company’s stock has a 5-day price change of 5.84% and 66.90% over the past three months. SPWR shares are trading 55.77% year to date (YTD), with the 12-month market performance down to -4.56% lower. It has a 12-month low price of $4.03 and touched a high of $15.57 over the same period. Currently, 3.34 million shares have been traded, compared to an average intraday trading volume of 4.05 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.79%, 27.47%, and 50.56% respectively.

Institutional ownership of SunPower Corporation (NASDAQ: SPWR) shares accounts for 42.70% of the company’s 170.00M shares outstanding. Mutual fund holders own 27.63%, while other institutional holders and individual stakeholders account for 53.14% and 14.60% respectively.

It has a market capitalization of $1.98B and a beta (3y monthly) value of 2.36. The stock’s trailing 12-month PE ratio is 368.18, while the earnings-per-share (ttm) stands at $0.03. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.24% over the week and 7.03% over the month.

Analysts forecast that SunPower Corporation (SPWR) will achieve an EPS of -$0.29 for the current quarter, -$0.05 for the next quarter and -$0.03 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.48 while analysts give the company a high EPS estimate of -$0.13. Comparatively, EPS for the current quarter was $0.07 a year ago. Earnings per share for the fiscal year are expected to increase by 102.60%, and 95.60% over the next financial year. EPS should grow at an annualized rate of -0.40% over the next five years, compared to -37.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate SunPower Corporation (SPWR) as a “Hold” at a consensus score of 3.20. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 6 of the 11 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the SPWR, a number of firms have released research notes about the stock. Cowen stated their Market Perform rating for the stock in a research note on February 13, 2020, with the firm’s price target at $10. ROTH Capital coverage for the SunPower Corporation (SPWR) stock in a research note released on February 04, 2020 offered a Neutral rating with a price target of $9. Credit Suisse was of a view on August 01, 2019 that the stock is Outperform, while Raymond James gave the stock Mkt Perform rating on June 19, 2019, issuing a price target of. Goldman on their part issued Buy rating on June 18, 2019.


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