SunPower (NASDAQ:SPWR) Downgraded by 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 Thursday, Zacks.com reports. They presently have a $27.00 price target on the semiconductor company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 9.44% from the stock’s current price.

According to Zacks, “SunPower is set to become the largest North American downstream DG solar pure play. The company added more than 12,000 customers during the first quarter, bringing its total customer base to 363,000, led by higher demand. Looking ahead, the company expects its new homes growth rate to exceed 40% over the next few years, considering its leading market share and strong backlog. Its shares have outperformed the industry in the past year. However, China's persistent trade and currency disputes with the United States have the potential to hurt SunPower’s growth trajectory. As the solar industry and many of its customers have been severely affected by the COVID-19 pandemic, SunPower’s business activity and demand have also been negatively impacted. A comparative analysis of its P/E TTM ratio reflects a relatively gloomy picture.”

Several other brokerages have also recently weighed in on SPWR. Barclays dropped their price target on shares of SunPower from $23.00 to $20.00 and set an “underweight” rating on the stock in a research report on Thursday, May 6th. Roth Capital reduced their price target on shares of SunPower from $40.00 to $24.00 and set a “neutral” rating for the company in a research report on Thursday, May 6th. The Goldman Sachs Group boosted their price target on shares of SunPower from $22.00 to $25.00 and gave the company a “neutral” rating in a research report on Friday, July 2nd. They noted that the move was a valuation call. Truist dropped their price objective on shares of SunPower from $42.00 to $29.00 in a report on Wednesday, May 12th. Finally, Robert W. Baird reissued a “buy” rating on shares of SunPower in a research note on Monday, March 29th. Four research analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has issued a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $25.42.

NASDAQ SPWR traded down $0.76 during trading on Thursday, reaching $24.67. 18,936 shares of the company’s stock were exchanged, compared to its average volume of 3,790,721. SunPower has a fifty-two week low of $9.13 and a fifty-two week high of $57.52. The firm’s 50 day simple moving average is $25.22. The company has a quick ratio of 1.74, a current ratio of 2.20 and a debt-to-equity ratio of 1.41. The firm has a market capitalization of $4.26 billion, a PE ratio of 11.52, a P/E/G ratio of 4.99 and a beta of 2.10.

SunPower (NASDAQ:SPWR) last released its earnings results on Wednesday, May 5th. The semiconductor company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.03. The firm had revenue of $306.40 million during the quarter, compared to analysts’ expectations of $310.15 million. SunPower had a negative return on equity of 14.10% and a net margin of 33.55%. The company’s quarterly revenue was up 5.5% on a year-over-year basis. During the same period in the prior year, the company earned ($0.10) earnings per share. On average, analysts forecast that SunPower will post 0.31 earnings per share for the current year.

In other SunPower news, CFO Manavendra Sial sold 11,116 shares of SunPower stock in a transaction dated Friday, May 7th. The shares were sold at an average price of $23.09, for a total transaction of $256,668.44. Following the completion of the sale, the chief financial officer now directly owns 92,862 shares in the company, valued at $2,144,183.58. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Vichheka Heang sold 4,336 shares of SunPower stock in a transaction dated Thursday, May 13th. The shares were sold at an average price of $21.47, for a total transaction of $93,093.92. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 57,774 shares of company stock worth $1,407,812. Insiders own 0.67% of the company’s stock.

Several hedge funds have recently made changes to their positions in SPWR. North Star Investment Management Corp. lifted its stake in SunPower by 1.4% in the second quarter. North Star Investment Management Corp. now owns 37,500 shares of the semiconductor company’s stock worth $1,096,000 after acquiring an additional 500 shares during the last quarter. Nia Impact Advisors LLC lifted its position in shares of SunPower by 1.3% during the 1st quarter. Nia Impact Advisors LLC now owns 239,621 shares of the semiconductor company’s stock worth $8,015,000 after buying an additional 3,166 shares during the last quarter. Squarepoint Ops LLC acquired a new position in shares of SunPower in the 1st quarter valued at $533,000. Cubist Systematic Strategies LLC increased its holdings in shares of SunPower by 72.4% in the 1st quarter. Cubist Systematic Strategies LLC now owns 117,931 shares of the semiconductor company’s stock valued at $3,945,000 after acquiring an additional 49,511 shares during the period. Finally, IHT Wealth Management LLC acquired a new position in shares of SunPower in the 1st quarter valued at $209,000. Hedge funds and other institutional investors own 32.59% of the company’s stock.

SunPower Company Profile

SunPower Corp. engages in the design, manufacture and deliver of solar panels and systems. It operates through the following business segments: Residential, Light Commercial; Commercial & Industrial Solutions; and Other. The Residential, Light Commercial segment refers to the sales of solar energy solutions, including sales to its third-party dealer network and resellers, storage solutions, cash and loan sales, and long-term leases directly to end customers.

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