Why SunPower Corporation (SPWR) Stock Suddenly Retreated Today

Big changes are happening at SunPower Corporation (NASDAQ:SPWR), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -6.56% or (-0.88 points) to $12.54 from its previous close of $13.42. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1072719 contracts so far this session. SPWR shares had a relatively better volume day versus average trading capacity of 2.91 million shares, but with a 62.71 million float and a -0.37% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SPWR stock indicates that the average analyst price target is $11.33 per share. This means the stock has a potential decrease of -9.65% from where the SPWR share price has been trading recently which is between $13.01 and $13.79. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.

The shorts are climbing into SunPower Corporation (SPWR) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a rise in short interest in SPWR shares. While short interest still represents only 27.69% of SPWR’s float, the number of shares shorted have risen by 148066. The number of shares shorted advanced to 17514290 shares, up from 17366224 shares during the preceding fortnight. With average daily trading volumes at 2257066 shares, days to cover increased to about 7.027267 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Why SunPower Corporation’s (NASDAQ:SPWR) CEO Pay Matters To You” and dated August 14, 2019.

During the recent trading session for SunPower Corporation (NASDAQ:SPWR), the company witnessed their stock drop by $-2.13 over a week and surge $1.58 from the price 20 days ago. When compared to their established 52-week high of $16.04, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 01/08/19. The recent low of $4.55 stood for a -21.82% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.25 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for SunPower Corporation, the two-week RSI stands at 52.68. This figure suggests that SPWR stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current SPWR readings is similarly very revealing as it has a stochastic reading of 50.14% at this stage. This figure means that SPWR share price today is being neutral.

Technical chart claims that SunPower Corporation (SPWR) would settle between $13.8/share to $14.19/share level. However, if the stock price goes below the $13.02 mark, then the market for SunPower Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $12.63 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.79. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Credit Suisse raised their recommendation on shares of SPWR from Neutral to Outperform in their opinion released on August 01. Raymond James analysts have lowered their rating of SunPower Corporation (NASDAQ:SPWR) stock from Outperform to Mkt Perform in a separate flash note issued to investors on June 19. Analysts at Goldman released an upgrade from Neutral to Buy for the stock, in a research note that dated back to June 18.

SPWR equity has an average rating of 3, with the figure leaning towards a bullish end. 11 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 3 analysts rated SunPower Corporation (NASDAQ:SPWR) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, SPWR stock price is currently trading at 70.63X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.4 while for the average stock in the same group, the multiple is 6.36.

SunPower Corporation (SPWR)’s current-quarter revenues are projected to climb by nearly 4.71% to hit $464300, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 11.06% from $1.81 billion to a noteworthy $2.02 billion. At the other end of the current quarter income statement, SunPower Corporation is expected to see its adjusted earnings surge by roughly 96.55% to hit $-0.01 per share. For the fiscal year, SPWR’s earnings are projected to climb by roughly 34.72% to hit $-0.47 per share.