SunPower Corporation SPWR shares are trading lower Friday after Guggenheim analyst Joseph Osha downgraded the stock from Neutral to Sell and announced a $1 price target.
The Details:
Guggenheim sees SunPower’s new financing deal as very dilutive to shareholders and pointed to it as the key factor in its downgrade.
SunPower announced the $175 million in new capital financing from TotalEnergies and Global Infrastructure Partners on Thursday. The $175 million term loan includes $45 million previously funded to the company in December and January, $80 million in new investment and a $50 million second tranche that is available to be borrowed upon the satisfaction of certain conditions.
The company also released its fourth-quarter financial results on Thursday. SunPower announced fourth-quarter losses of 51 cents per share which missed the analyst consensus estimate of losses of 24 cents by 112.5%.
The company reported quarterly sales of $361.3 million, missing the analyst consensus estimate of $362.85 million and respresting a 27.35% decrease over sales of $497.31 million from the same period last year.
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SPWR Stocck Prediction 2024
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at SunPower SPWR, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For SunPower, the 200-day moving average sits at $6.88, according to Benzinga Pro, which is above the current price of $3.69. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
SPWR Price Action: According to Benzinga Pro, SunPower shares are down 14% at $3.68 at the time of publication.
Image: Miriams-Fotos from Pixabay
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