Take off with SunPower Corporation (SPWR): Get ready for trading

SunPower Corporation (NASDAQ: SPWR) stock fell -1.16% on Tuesday to $16.22 against a previous-day closing price of $16.41. With 3.5 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.69 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $16.64 whereas the lowest price it dropped to was $15.81. The 52-week range on SPWR shows that it touched its highest point at $28.42 and its lowest point at $12.78 during that stretch. It currently has a 1-year price target of $21.83. Beta for the stock currently stands at 1.96.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SPWR was down-trending over the past week, with a drop of -13.49%, but this was down by -19.34% over a month. Three-month performance surged to 2.92% while six-month performance fell -2.29%. The stock gained 2.69% in the past year, while it has lost -10.04% so far this year. A look at the trailing 12-month EPS for SPWR yields 0.58 with Next year EPS estimates of 0.55. For the next quarter, that number is 0.14. This implies an EPS growth rate of -107.00% for this year and 58.91% for next year. EPS is expected to grow by 45.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.80%.

Float and Shares Shorts:

At present, 174.12 million SPWR shares are outstanding with a float of 172.86 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.15 million, which was 6.98% higher than short shares on Sep 14, 2022. In addition to Mr. Peter T. Faricy as the firm’s Chairman, Pres & CEO, Mr. Douglas J. Richards serves as its Exec. VP & Chief People Officer.

Institutional Ownership:

Through their ownership of 89.24% of SPWR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 23.04% of SPWR, in contrast to 14.49% held by mutual funds. Shares owned by individuals account for 102.24%. As the largest shareholder in SPWR with 6.17% of the stake, BlackRock Fund Advisors holds 10,751,121 shares worth 10,751,121. A second-largest stockholder of SPWR, The Vanguard Group, Inc., holds 7,796,494 shares, controlling over 4.48% of the firm’s shares. Invesco Capital Management LLC is the third largest shareholder in SPWR, holding 3,506,908 shares or 2.01% stake. With a 1.63% stake in SPWR, the Invesco Solar ETF is the largest stakeholder. A total of 2,841,820 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.51% of SPWR stock, is the second-largest Mutual Fund holder. It holds 2,637,856 shares valued at 47.56 million. iShares Core S&P Mid Cap ETF holds 1.51% of the stake in SPWR, owning 2,633,207 shares worth 47.48 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPWR since 22 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SPWR analysts setting a high price target of $32.00 and a low target of $16.00, the average target price over the next 12 months is $22.29. Based on these targets, SPWR could surge 97.29% to reach the target high and fall by -1.36% to reach the target low. Reaching the average price target will result in a growth of 37.42% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SPWR will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of $0.37 being high and -$0.09 being low. For SPWR, this leads to a yearly average estimate of $0.29. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SunPower Corporation surprised analysts by $0.06 when it reported $0.13 EPS against a consensus estimate of $0.07. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.60 and the low estimate is $0.06. The average estimate for the next quarter is thus $0.16.

Summary of Insider Activity:

Insiders traded SPWR stock several times over the past three months with 6 Buys and 5 Sells. In these transactions, 25,492 shares were bought while 11,646 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 366,887 while 132,096,842 shares were sold.

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