With energy prices falling to new lows today, shares of SunEdison Inc (NYSE:SUNE) have fallen significantly in afternoon trading. Always one of the top traded stocks, investors have been bearish on SunEdison as prices for heating, gasoline, crude oil and brent have all taken hits today, mostly on worries of oversupply.
Since SunEdison Inc (NYSE:SUNE) specializes in renewable energy sources, such as solar and wind energy, as well manufacturing high purity polysilicon, silicon ingots, silicon wafers, solar modules and more, when the price of alternatives fall, it theoreticaly reduces the demand for their products. If oil becomes affordable, who wants to spend relatively more for solar or wind power (unless you are looking to save the environment)?
It should be interesting to follow the price of Crude and Brent Oil before the start of the New Year, and the correlation that renewable energy companies’ stock like Sunedison Inc (NYSE:SUNE) continue to show.
The stock is down 7.43% or $0.44, hitting $5.48 per share. Approximately 33.17M shares traded hands. SUNE shares have declined 80.70% since May 22, 2015 and are currently downtrending. It has underperformed the S&P500 by 78.43%.
From a total of 14 analysts covering SunEdison Inc (NYSE:SUNE) stock, 9 rate it a “Buy”, 2 a “Sell”, and 3 a “Hold”. This means that 64% of the ratings are positive. The highest target price is $42 while the lowest target price is $6.0. The mean of all analyst targets is $19.23 which is 250.91% above today’s ($5.48) stock price. SunEdison Inc was the topic of 40 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Bank of America maintained shares on December 10 with a “Buy” rating. JP Morgan maintained shares with a”Overweight” rating and a $19 target share price in their report from a September 29. JP Morgan downgraded SUNE stock in a recent report from November 20 to a “Neutral” rating. S&P Research maintained the rating on September 9. S&P Research has a “Strong Buy” rating and a $32 price target on shares. Finally, Needham maintained the stock with a “Buy” rating in a report they issued on a November 11.
SunEdison, Inc. is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a developer and maker of silicon wafers. The company has a market cap of $1.85 billion. The Firm operates in three divisions: Solar Energy, TerraForm Power and Semiconductor Materials through SunEdison Semiconductor Ltd. (SSL). It currently has negative earnings. The Company’s Solar Energy segment provides solar energy services that integrate the design, installation, financing, monitoring, activities and maintenance portions of the downstream solar market for the Company’s customers.