SunPower (SPWR) Cut to Hold at Zacks Investment Research

SunPower (NASDAQ:SPWR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “SunPower is gradually shifting its revenue base from solar panel sales to the development of solar projects, power plants and engineering, procurement and construction (EPC) systems. Meanwhile, it remains committed to provide high-performance solar power products to its customers. In the overseas, the company has plans to build six projects in many regions in Mexico with expected delivery dates of 2018 and 2019, and gross margin above 20%. However, rising cost is a major headwind for SunPower, given the constant need to come up with new and innovative technology. Moreover the company underperformed the broader industry in past one year. Also the repealing of the Clean Power Plan is expected to weigh heavily on solar power companies like SunPower.”

SPWR has been the topic of several other research reports. Bank of America set a $10.00 target price on shares of SunPower and gave the stock a “hold” rating in a research note on Thursday, December 28th. BidaskClub upgraded shares of SunPower from a “hold” rating to a “buy” rating in a research note on Tuesday, December 19th. ValuEngine downgraded shares of SunPower from a “hold” rating to a “sell” rating in a research note on Friday, September 22nd. Cowen reiterated a “buy” rating and issued a $12.00 target price on shares of SunPower in a research note on Sunday, September 17th. Finally, Macquarie downgraded shares of SunPower from an “outperform” rating to a “neutral” rating in a research report on Friday, September 8th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $9.85.

Shares of SunPower (NASDAQ SPWR) traded down $0.25 during midday trading on Tuesday, hitting $8.43. 2,397,200 shares of the stock traded hands, compared to its average volume of 3,116,577. The company has a market capitalization of $1,176.58, a P/E ratio of -2.10 and a beta of 3.16. SunPower has a 52-week low of $5.84 and a 52-week high of $11.70. The company has a current ratio of 1.41, a quick ratio of 1.02 and a debt-to-equity ratio of 1.71.

SunPower (NASDAQ:SPWR) last issued its earnings results on Thursday, November 2nd. The semiconductor company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.39) by $0.60. The firm had revenue of $477.20 million for the quarter, compared to the consensus estimate of $383.76 million. SunPower had a negative net margin of 24.91% and a negative return on equity of 20.81%. The business’s revenue was down 34.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.68 earnings per share. equities research analysts forecast that SunPower will post -0.77 earnings per share for the current year.

In related news, Director Catherine A. Lesjak sold 23,632 shares of the stock in a transaction that occurred on Wednesday, December 6th. The shares were sold at an average price of $7.50, for a total transaction of $177,240.00. Following the transaction, the director now owns 55,924 shares in the company, valued at $419,430. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.92% of the stock is owned by corporate insiders.

Institutional investors have recently modified their holdings of the stock. Quentec Asset Management LLC bought a new position in SunPower during the third quarter valued at approximately $3,208,000. Northern Trust Corp raised its position in SunPower by 141.3% in the second quarter. Northern Trust Corp now owns 845,237 shares of the semiconductor company’s stock worth $7,894,000 after acquiring an additional 494,979 shares during the period. Vanguard Group Inc. raised its position in SunPower by 13.8% in the second quarter. Vanguard Group Inc. now owns 4,922,577 shares of the semiconductor company’s stock worth $45,977,000 after acquiring an additional 598,221 shares during the period. Nationwide Fund Advisors bought a new position in SunPower in the second quarter worth approximately $317,000. Finally, The Manufacturers Life Insurance Company raised its position in SunPower by 1,204.1% in the second quarter. The Manufacturers Life Insurance Company now owns 49,609 shares of the semiconductor company’s stock worth $463,000 after acquiring an additional 45,805 shares during the period. Institutional investors own 25.39% of the company’s stock.

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SunPower Company Profile

SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation.

Analyst Recommendations for SunPower (NASDAQ:SPWR)

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