SunPower stock collapses below $1 as company halts leases, installations and shipments

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Sunnova Energy International Inc,Investment Strategy,Energy

SunPower's stock has fallen more than 40% this week as the company may be nearing its end as an operating business.

The collapse this week came after SunPower told dealers that it was halting new leases, installations and shipments.Workers install solar panels during a SunPower installation on a home in Napa, California, US, on Monday, July 17, 2023.stock collapsed 70% this week after the company informed dealers that it will no longer support new leases, installations or product shipments, with analysts largely writing the company off as on the verge of going out of business.

SunPower stock has lost nearly all of its value the last 12 months, with shares down 93% to trade at 79 cents on Friday. Guggenheim Securities has slashed its price target to $0 from $1 previously. The decision to effectively suspend operations is the result of SunPower's weakened cash flow and balance sheet as well as its inability to tap capital markets because the company is not current with the Securities and Exchange Commission, JPMorgan analysts led by Mark Strouse told clients.SunPower had 524 megawatts in system installations and component sales in 2023, according to Guggenheim.

 

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