Why Did Sunedison Inc (SUNE) Shares Just Drop?


Shares of Sunedison Inc (NYSE:SUNE) are in free fall this morning after news just broke that Appaloosa Management LP, a major holder of Class A Common stock of TerraForm Power, has requested to inspect the books of TerraForm Power Inc. in order to learn more about its agreements with Sunedison Inc (NYSE:SUNE). The request is related to Sunedison’s deal to acquire Vivint Solar. The stock has plunged on this news, surprising shareholders. Shares of Sunedison Inc (NYSE:SUNE) are coming off of a 10-day rally in which they more than doubled after news that a solar-friendly spending bill had passed the House and the Senate. Today alone though shares have given back close to 40% of those gains.

The stock has fallen 20.27% or $1.36 following this negative news, hitting $5.35 per share. Approximately 17.64M shares traded hands. SUNE shares have declined 76.92% since May 19, 2015 and are currently downtrending. It has underperformed the S&P500 by 74.65%.

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 259.44% above today’s ($5.35) 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 $2.11 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.