Skip to main content

Market Overview

Concerns At SunEdison Might Be Impacting Several Other Solar Stocks

Concerns At SunEdison Might Be Impacting Several Other Solar Stocks

Solar investors are bracing for further industry-wide selloffs following concerning reports that Sunedison Inc (NYSE: SUNE) is the subject of a Securities and Exchange investigation.

Shares of SunEdison plunged below the $1 mark as the company is alleged to have overstated how much cash it holds on its balance sheet. The concerning headline has sent shock waves across the solar sector.

Related Link: Sunedison Plunges Under $1 Following Report Of SEC Probe, TerraForm Global 8K

Throughout The Sector, Concerns Run Rampant

TerraForm Global Inc (NASDAQ: GLBL) shares were seen down more than 20 percent at $1.99 in early trading Tuesday.

The company says it has identified material weakness in internal controls over financial reporting, primarily due to SunEdison's "ineffective controls over accounting consolidation and reporting system" the former company relies upon.

TerraForm Global now anticipates filing its 10-K for the fiscal year ending December 31, 2015, later than March 30, 2016. On or prior to March 30, 2016, the company is expected to file form 12b-25 for an official extension, according to a recent 8-K filing.

Shares of TerraForm Power Inc (NASDAQ: TERP) were trading lower by more than 13 percent ahead of Tuesday's market open.

Shares of SolarCity Corp (NASDAQ: SCTY) fared better but were still lower by nearly 2.50 percent, while shares of Canadian Solar Inc. (NASDAQ: CSIQ) were lower by 1 percent.

The bearish case against solar stocks has been well communicated with investors. Notable solar analyst Gordon Johnson of Axiom Equity Research called for further downside in SunEdison and SolarCity's stocks in early March.

Johnson also argued that the entire solar industry faces headwinds as global demand is "almost sure to slow" throughout 2016.

Image Credit: Public Domain


Related Articles (SUNE)

View Comments and Join the Discussion!

Posted-In: Axiom Equity ResearchAnalyst Color News Legal Intraday Update Movers Tech Trading Ideas Best of Benzinga

Latest Ratings

VORStifelInitiates Coverage On58.0
VORGoldman SachsInitiates Coverage On19.0
TERNJP MorganInitiates Coverage On32.0
TERNCowen & Co.Initiates Coverage On
TERNGoldman SachsInitiates Coverage On29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at