Sunedison Inc (SUNE) Shares Plunge on Doubts That Company Will Make it Through 2016


It has been one heck of a rollercoaster ride for shareholders of Sunedison Inc (NYSE:SUNE) stock, as shares continue to plunge today after Managing Director and Senior Equity Research Analyst at Axiom Capital Management, Gordon Johnson, issued a statement saying that he was unsure if the company could survive 2016. While many solar stocks are up big following the climate agreement in Paris late last year, Sunedison Inc (NYSE:SUNE) shares have been on a downward spital.

“Sunedison amassed a massive amount of debt… The majority of that debt was used to buy projects they intended to drop down into their yieldco,” Johnson stated “Essentially what happened is the yieldco story ended, and this was a company left with a lot of debt and a lot of projects which are extremely capital intensive. When the yieldco story fell apart, you didn’t have that buyer of first resort.”

Shares of Sunedison Inc (NYSE:SUNE) are down well over 90% over the last six months as investors wonder if the company will be able to be able to sell any of their projects any time soon. Johnson also gave his opinion on the company’s recent restructuring of their debt saying, “I think this deal makes me more cautious on the company’s ability to make it through 2016.”

The stock has fallen 21.56% or $0.72 following this negative news, hitting $2.62 per share. Approximately 33.74M shares traded hands. SUNE shares have declined 88.87% since June 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 81.39%.

From a total of 16 analysts covering SunEdison Inc (NYSE:SUNE) stock, 11 rate it a “Buy”, 1 a “Sell”, and 4 a “Hold”. This means that 69% of the ratings are positive. The highest target price is $42 while the lowest target price is $2. The mean of all analyst targets is $16 which is 510.69% above today’s ($2.62) stock price. SunEdison Inc was the topic of 45 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Avondale upgraded shares on January 8 to a “Mkt Outperform” rating. JP Morgan maintained shares with a”Overweight” rating and a $19 target share price in their report from a September 29. Needham maintained SUNE stock in a recent report from January 8 with a “Buy” 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, FBR Capital initiated the stock with a “Outperform” rating in a report they issued on a December 18.

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 $959.67 million. 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.